SM RETAIL, Inc., the retail arm of the Sy-led conglomerate SM Investments Corp. (SMIC), is aiming to tap the Gen Z market to boost sales.
Figures from SM Store, SM Retail’s department store business, showed a 13% increase in in-store purchases by young shoppers last year.
“Our strategy has always been ‘We’ve got it all for you.’ SM Store offers a broad product range that appeals to different market segments, making it a one-stop shop for all. We’re also placing greater emphasis on engaging with Gen Z,” SM Retail Executive Vice-President Jonathan Ng said in an e-mail statement on Monday.
“Filipino shoppers, especially Gen Z, are more experiential and tactile in their shopping preferences,” he added.
A recent government census showed that Gen Z, ages 13 to 28 or born between 1997 and 2012, currently accounts for up to 38% of the Philippine population.
“While Gen X and Millennials still lead in terms of purchasing power, we’re strategically investing in Gen Z as they become an increasingly influential consumer group,” Mr. Ng said.
Gen X, ages 45 to 60, are those born between 1965 and 1980, while Millennials, ages 29 to 44, are born between 1981 and 1996.
SM Retail said it has been focused on improving the customer experience through strategic partnerships, such as its collaboration with Coffee Bean and Tea Leaf, to create a more enjoyable in-store environment.
The company also seeks to align with Gen Z’s preferences, led by a focus on in-store discounts, convenience, and the ability to quickly own products.
For 2024, SM Retail reported a 5% increase in net income to P20.9 billion, as retail revenue climbed by 5% to P434.5 billion.
SMIC stocks gained by 1.88% or P15 to P815 per share on Monday. – Revin Mikhael D. Ochave
