Philippine mall titan accelerates shift to ‘omni-channel’ sales to replicate success in China-style retailing approach
- Sales of tenants in SM’s malls will be back to 2019’s level by the third quarter of next year, a top executive predicts
- SM has 75 shopping centres in the Philippines and eight in China, and plans to add five more in 2021
The group is tapping personal shoppers, ramping up delivery and pickup services, and boosting its online presence, said Steven Tan, president of SM Prime’s mall unit. Last month, the group started operating a virtual mall for Manila residents, which it plans to roll out nationwide soon, he said.
“You have to be present in all channels,” Tan, 51, said in a virtual interview. “Retail is all about listening to your customers and moving so fast.”
The group founded by the late Filipino billionaire Henry Sy is adopting the “omni-channel” retailing approach to replicate the success by industry peers in China, where consumers shop both online and at malls, he said. Although shopping centres need to keep up with changing times, they will not go out of style, Tan said.
01:44
Tightened measures and panic buying in Philippines as coronavirus cases rise to 49
SM has 75 shopping centres in the Philippines and eight in China. It is opening another in its home country this quarter and about five are planned for next year, he added.
Filipinos are returning to shopping centres as virus quarantine curbs ease. Still, shopping habits may have changed, Tan said. People visiting malls are those purposely buying and not just window shopping, he added, forecasting that by the third quarter of next year, sales of tenants at SM malls will be back at end-2019 levels.