SMIC taps into resilient Filipino consumers for long-term growth

The Sy family’s flagship SM Investments Corporation (SMIC) expects to stay on its long-term growth trajectory, banking on the Philippines’ resilient consumption-led economy, synergies across its business segments, and strong consumer fundamentals.

“The Philippine economy remains consumption-driven, and SM Investments is well-positioned to support and capture this demand,” said SMIC President and CEO Frederic C. DyBuncio. 

He added that, “Our strong ecosystem—spanning retail, banking, and property—enables us to navigate challenges while delivering long-term value.”

In a recent report on Philippine conglomerates, equity research firm CLSA noted that SM’s retail segment will benefit from minimum wage increases, sustained remittances, and consumer spending resilience despite macroeconomic uncertainties.

It explained that wage adjustments and higher remittances, aided by a weaker peso, are expected to support household spending, particularly in essential categories. While consumer spending patterns may evolve, CLSA maintains that overall consumption will remain a key economic driver.

“We would note SMIC remains largely resilient and is worth a look given its valuation. SMIC is a beneficiary of a consumption-driven economy,” CLSA Equity Analyst Joyce Anne Ramos said.

She added that, “We anticipate spending behavior to continue to favor staples (essential items) over discretionary, with minimarts still driving growth.” 

SM’s minimart chain Alfamart is expected to continue its expansion this year. From its first store in Trece Martires, Cavite in 2014, Alfamart has grown its footprint to 2,100 in the last 10 years, mainly in Luzon and Metro Manila.  

“We continue to see strong demand for essentials, with minimarts playing an essential role in serving everyday consumer needs,” DyBuncio said.

Beyond retail, CLSA underscored SMIC’s synergies across its portfolio, highlighting SM Prime’s record earnings and expanding mall network as well as BDO’s financial services as key growth drivers.

“We forecast that the retail segment will benefit from the widening presence of SM Prime, which in turn could boost BDO’s loan base and current account and savings account. 

“Likewise, we expect the indispensable nature of the retail business’ products to increase foot traffic in malls and cater to upscale lifestyle,” CLSA wrote.

Currently, SM Prime has 87 malls in the Philippines with expansion geared towards the provinces to cover most of Northern Luzon, Visayas, and the progressive cities in Mindanao.

With a strong financial foundation, strategic business integration, and a focus on sustainable growth, SMIC said it remains committed to driving economic progress and delivering long-term value for its investors, customers, and communities.

“Our businesses complement each other—our expanding retail footprint enhances mall traffic, while BDO provides financial solutions that fuel both consumption and enterprise growth. These synergies allow us to build resilience and create shared value for our stakeholders,” DyBuncio said.