SM Prime Holdings
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| Type | Public company (PSE: SMPH), |
|---|---|
| Founded |  Manila, Philippines (1958) |
| Headquarters | Pasay City, Philippines |
| Number of locations | 35 malls (as of 2009), with 14 proposed or under construction. |
| Area served | Philippines Xiamen, China Guam |
| Key people | Henry Sy, Sr. (Founder, Chairman and CEO) |
| Industry | Retail industry |
| Website | SM Prime Holdings |
SM Prime Holdings, Inc. (PSE: SMPH) or SM Prime is the parent company of the SM Group's shopping malls. It is the largest shopping mall and retail operator in the Philippines. It was incorporated on 6 January 1994 by Filipino-Chinese entrepreneur Henry Sy, Sr. to develop, conduct, operate and maintain the SM commercial shopping centers and all businesses related thereto, such as the lease of commercial spaces within the compound of shopping centers. It later went public on July 5, 1994 and subsequently grew to become the largest company listed on the Philippine Stock Exchange in terms of revenue. As of 2007, SM Prime Holdings became one of the largest shopping mall chains in the world. The company's main sources of revenues include rental income from mall and food courts, cinema ticket sales and amusement income from bowling and ice-skating.
Currently, it has 35 operating malls totaling a gross floor area of 4.5 million square meters located in Metro Manila, Batangas, Bulacan, Cavite, Laguna, Pampanga, Pangasinan, Rizal, Angeles City, Bacolod City, Baguio City, Cagayan de Oro City, Cebu City, Davao City, Iloilo City and Naga City.
On April 2, 2008, SM Investments Corp. (the parent company to SM Prime) announced that it would participate in a $1 billion casino project in Manila. The 40-hectare Bagong Nayong Pilipino-Manila Bay Integrated Tourism Project consists of a casino, hotels, shopping malls and other entertainment facilities.[1]
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[edit] History
The roots of SM date back to the 1950s when entrepreneur Henry Sy, Sr. established a shoe store in Carriedo, the then-central business district of Manila. His aggressive and adamant strategy helped him gain large profits within a few years and he later expanded his business in Quiapo to become a fully functioning department store named "Shoemart", specialising in the sale of shoes, the sector of which the store originally was. Shoemart was later abbreviated to SM and became commonly known as "SM" or "Shoemart" by the locals. The SM in Carriedo was later abandoned and moved in the present site in Quiapo near the Manila LRT Yellow Line. The old site was demolished in 1982.
The first SM Supermall, SM City North EDSA, was opened in 1985 and started the Philippine "malling" phenomenon[citation needed]. Sy observed the malling hobby of Filipinos and opted to make every SM Supermall like an amusement park. All SM Supermalls contain at least one or more amusement facilities, such as cinemas, bowling alleys, convention centers and games arcades.
Located in several cities and areas in Metro Manila, as well as major provincial cities, each SM is easily accessible and situated by places of public interest (churches, schools, major roads and highways, etc). SM opened its first department store outside Metro Manila (SM Delgado) in Iloilo City in 1979 and was relaunched in 2004.
The first ice skating rink in the Philippines was opened in SM Megamall in 1991. With this first, SM introduced Filipinos to an art-sport otherwise unpopular in tropical countries. The SM Supermalls also house 146 cinemas (with over 103,708 total seating capacity), making SM Prime Holdings the largest cinema operator in the country.
As of 2006, SM Prime Holdings is embarking on an aggressive expansion program within the next five years. In preparation for this expansion, SM Prime Holdings, Inc. has amassed a total landbank of 96.6 hectares in 10 strategic locations. Included are attractive properties in provinces where urbanization is steadily underway, such as Cabanatuan, Pangasinan and Bulacan.
By 2006, five additional SM Supermalls will be operational, including the SM Mall of Asia which has opened recently. This is SM Prime Holdings most expensive project to date.
The SM Group has engaged in other retail endeavors through other SM related companies such as, among others: Watsons Personal Care Stores, Inc., a joint-venture with Hutchison-Whampoa Ltd. of Hong Kong; International Toy World (Toy Kingdom); Ace Hardware Philippines, a joint-venture with Ace Hardware Corporation USA; Star Appliance Center; Surplus Shop; Sports Central; Baby and Co.; Home World; and Our Home. The amusement center is SM Storyland.
There are plans to open stores in North America, Australia and Japan.
[edit] Financial performance
SM Prime Holdings posted an 8.6% increase in net income to Php4.62 billion from Php4.26 billion. This is due to a healthy increase in gross revenues, by 15.99% to Php10.21 billion from Php8.80 billion. Rental income, which contributed 80.14% of the company's revenues, rose by 17.18% to Php8.18 billion from Php6.98 billion. This was due to rentals from three additional SM Supermalls opened in the last quarter of 2003, namely: SM City Lucena, SM City Baguio and SM City Marilao, and the opening of SM City Dasmariñas and SM City Batangas in 2004. On the other hand cinema ticket sales increased by 11.26% to Php1.50 billion from Php1.34 billion. Other sources of revenue grew 12.01% to Php532.52 million from Php475.43 million.[citation needed].
[edit] Malls
[edit] SM Supermalls
| Name | Opening | Land area (m²) | Floor area (m²) | Location |
|---|---|---|---|---|
| SM City North EDSA | November 1985 | 187,000 | 460,000 | North Avenue cor. EDSA, Barangay Pag-asa 1,Quezon City, Metro Manila |
| SM City Sta. Mesa (formerly SM Centerpoint) | September 1990 | 30,000 | 133,327 | Ramon Magsaysay Boulevard cor. Araneta Ave., Barangay Dona Imelda Quezon City, Metro Manila |
| SM Megamall Ortigas | June 1991 | 184,000 | 346,679 | EDSA cor. Julia Vargas Avenue, Ortigas Center, Mandaluyong City, Metro Manila |
| SM City Cebu | November 1993 | 161,562 | 268,611 | North Reclamation Area, Cebu City, Cebu |
| SM City Southmall | April 1995 | 200,000 | 205,120 | Alabang-Zapote Road, Las Piñas City, Metro Manila |
| SM City Bacoor | July 1997 | 88,000 | 116,892 | General Emilio Aguinaldo Highway cor. Tirona Highway, Brgy. Habay, Bacoor, Cavite |
| SM City Fairview | October 1997 | 220,000 | 182,783 | Quirino Hwy. cor. Regalado Ave. and Belfast St., Greater Lagro, Quezon City, Metro Manila |
| SM City Iloilo | June 1999 | 175,000 | 101,735 | Benigno S. Aquino Jr. Avenue, Jaro West Diversion Road, Mandurriao, Iloilo City, Iloilo |
| SM City Manila | April 2000 | 25,000 | 166,554 | Natividad Almeda-Lopez (formerly called Concepcion) corner A. Villegas (formerly called Arroceros) and San Marcelino Streets, Ermita, Manila |
| SM City Pampanga | November 2000 | 316,000 | 129,102 | Olongapo-Gapan Road corner North Luzon Expressway, Brgy. Lagundi, Mexico, Pampanga and Brgy San Jose, City of San Fernando, Pampanga |
| SM City Sucat (formerly SM Supercenter Sucat) | July 2001 | 65,000 | 98,106 | Dr. A. Santos Avenue cor. Carlos P. Garcia Avenue Extension (C5), Brgy. San Dionisio, Parañaque City, Metro Manila |
| SM City Davao | November 2001 | 132,000 | 75,440 | Quimpo Boulevard corner Tulip Drive, Ecoland Subdivision, Brgy. Matina, Davao City, Davao del Sur |
| SM City Bicutan | November 2002 | 18,000 | 112,737 | Doña Soledad Avenue corner West Service Road (beside Exit 14, Bicutan exit), Brgy. Don Bosco, Bicutan, Parañaque City, Metro Manila |
| SM City Cagayan de Oro | November 2002 | 52,000 | 86,288 | Mastersons Avenue cor. Gran Via St., Upper Carmen, Cagayan de Oro City, Misamis Oriental |
| SM City Lucena | October 3, 2003 | 80,000 | 78,655 | Maharlika Highway corner Dalahican Road, Brgy. Ibabang Dupay, Lucena City, Quezon |
| SM City Baguio | November 2003 | 80,000 | 105,331 | Luneta Hill, Upper Session Road cor. Gov. Pack Road, Baguio City, Benguet |
| SM City Marilao | November 2003 | 203,000 | 88,654 | MacArthur Highway, Brgy. Lias, Marilao, Bulacan |
| SM City Dasmariñas | May 21, 2004 | 127,000 | 79,792 | Governor's Drive, Brgy. Sampaloc 1, Dasmariñas City, Cavite |
| SM City Batangas | November 12, 2004 | 85,000 | 76,819 | Brgy. Pallocan Kanluran, Batangas City, Batangas |
| SM City San Lazaro | July 15, 2005 | 40,000 | 179,000 | Felix Huertas Street corner Arsenio H. Lacson Extension, Santa Cruz, Manila |
| SM Supercenter Valenzuela | October 28, 2005 | 24,000 | 61,460 | MacArthur Highway, Brgy. Karuhatan, Valenzuela City, Metro Manila |
| SM Supercenter Molino | November 18, 2005 | 48,000 | 48,248 | Molino Road, Brgy. Molino 4, Bacoor, Cavite |
| SM City Santa Rosa | February 17, 2006 | 170,000 | 79,325 | Old National Highway, Barrio Tagapo, Santa Rosa City, Laguna |
| SM City Clark | May 12, 2006 | 176,500 | 98,824.19 | M.A. Roxas Avenue, Clark Special Economic Zone, Angeles City, Pampanga |
| SM Mall of Asia | May 21, 2006 | 145,000 | 407,101 | SM Central Business Park, North Reclamation Area, Bay City, Pasay City, Metro Manila |
| SM Supercenter Pasig | August 19, 2006 | 20,080 | 29,017.12 | E. Rodriguez, Jr. Ave. (C5) corner Doña Julia Vargas Ave., Frontera Verde, Ortigas Center, Brgy. Ugong, Pasig City, Metro Manila |
| SM City Lipa | September 22, 2006 | 103,242 | 72,035 | J.P. Laurel Highway, Lipa City, Batangas |
| SM City Bacolod | March 2, 2007 | 161,096.60 | 61,413 | Rizal Avenue, Reclamation Area, Bacolod City, Negros Occidental |
| SM City Taytay | November 9, 2007 | 38,525 | 91,920 | Manila East Road corner Bulacan-Rizal-Manila-Cavite Regional Expressway, Brgy. Dolores, Taytay, Rizal |
| SM Supercenter Muntinlupa | November 16, 2007 | 36,601 | 52,000 | Km. 29 National Road, Tunasan, Muntinlupa City, Metro Manila |
| SM City Marikina | September 5, 2008 | 30,000 | 24,877 | Marcos Highway corner East Marikina Riverbanks Service Road, Brgy. Kalumpang, Marikina City, Metro Manila |
| SM City Rosales | November 28, 2008 | 121,685 | 60,989 | McArthur Highway, Brgy. Carmen East, Rosales, Pangasinan |
| SM City Baliuag | December 12, 2008 | 89,000 | 63,000 | DRT Highway, Brgy. Pagala, Baliuag, Bulacan |
| SM City Naga | May 1, 2009 | 46,000 | 87,959 | CBD II, Brgy. Triangulo, Naga City, Camarines Sur |
| SM Center Las Piñas | October 2, 2009 | 28,000 | 34,000 | Alabang-Zapote Road, Pamplona, Las Piñas City, Metro Manila |
| SM City Rosario | November 2009 | 50,000 | General Trias Drive, Tejeros Convention, Rosario, Cavite | |
| SM Supercenter Commonwealth | 2010 | ? | ? | Commonwealth Avenue, Quezon City, Metro Manila [2] |
| SM City Novaliches | Novaliches, Quezon City | |||
| SM City Tarlac | February 12, 2010 | ? | 103,000 | MacArthur Highway, Brgy. San Roque, Tarlac City, Tarlac [3] |
| SM City San Pablo | August 2010 | 68,000 | 80,000 | Maharlika Highway, Riverina Subdivision, Brgy. San Rafael, San Pablo City, Laguna [4] |
| SM City Calamba | October 2010 | 195,000 | National Road, Brgy. Real, Calamba City, Laguna | |
| SM City Taguig | 2011 | ? | ? | Carlos P. Garcia Avenue (C-5) cor. McAthur Drive, Bonifacio Global City, Taguig City, Metro Manila [5] |
| SM City Laoag | 2010 | ? | ? | Laoag City Riverbank, Laoag City, Ilocos Norte |
| SM City Santa Ana | 2011 | ? | ? | A.P. Reyes Ave. cor. Hippodromo St. Brgy. Carmona, Makati City, Metro Manila |
| SM City North Davao | 2011 | ? | ? | Former Lanang Golf and Country Club, J.P. Laurel Ave., Lanang District, Davao City, Davao del Sur [6] |
| SM City Santiago | ? | ? | ? | Maharlika Highway, Brgy. Malvar, Santiago City, Isabela [7] |
| SM City General Santos | 2010 | 125,000 | 360,000 | Santiago Blvd., General Santos City, South Cotabato [8] |
| SM Supercenter Candelaria | late 2010 | ? | ? | Maharlika Highway, Brgy. Malabanban Norte, Candelaria, Quezon |
| SM City Tagaytay | 2012 | ? | ? | Aguinaldo Highway, Tagaytay-Nasugbu Road, Brgy. Silang Crossing West, Tagaytay City, Cavite |
[edit] Branches in China
| Name | Opening | Floor area (m²) | Location |
|---|---|---|---|
| SM City Xiamen | Dec. 13, 2001 | 126,000 | 2F, SM City, NO468 Jiahe Road, Xiamen, China |
| SM City Jinjiang | Nov. 26,2005 | 170,000 | Fu PU SM International Square Jinjiang, China |
| SM City Chengdu | Oct. 20,2006 | 176,000 | SM City (CHENGDU) NO.29, Section.2 of 2nd Ring Road, Chengdu, Sichuan, China |
| SM Lifestyle Center | Oct. 30,2009 | 110,000 | |
| SM City Suzhou | 70,000 | ||
| SM City Chongqing | 150,000 | ||
| SM City Zibo | 68,000 | ||
| SM City Beijing | 68,000 |
[edit] Branch in USA
- SM Guam
- 42,000 sq ft. Opened 2006 in the Agana Shopping Center in Guam, which SM also bought and repaired after it was severely damaged by a typhoon. It is the 1st SM store on US territorial soil since a previous attempt in the 1970s—before SM had grown into a retail giant.[9]
[edit] Standalone department stores
The SM standalone department stores are some of the first department stores before it grew into a big business.
| Name | Opening | Location |
|---|---|---|
| SM Quiapo (Clearance Store) | November 1972 | Carriedo St., Quiapo, Manila |
| SM Makati (Flagship Store) | September 1975 | Ayala Center cor. EDSA, Makati City, Metro Manila |
| SM Cubao | October 1978 | Araneta Center, Cubao, Quezon City, Metro Manila |
| SM Delgado (Iloilo) | May 1979 | Valeria Street cor. Delgado Street, Iloilo City, Iloilo |
| SM Harrison | October 1984 | F.B. Harrison Street, Pasay City, Metro Manila |
[edit] Standalone supermarkets
The SM Group's standalone supermarkets are not within the listed entity of SM Prime, but are in the parent to SM Prime, namely SM Investment (SMPH).
[edit] Makro
Pilipinas Makro, which operates the Makro stores in the Philippines was originally a partnership between the Sy family's SM Group, SHV Holdings N.V. of the Netherlands, and the Ayala group.
In 2004, the Ayala group sold its 28% interest in Makro to its joint-venture partners, and in late 2007 SM Investments folded the Makro stores into its operations after it increased its ownership of Pilipinas Makro to 60%. The SM group now holds 100% of Makro, but due to the economic slowdown in the Philippines and poor acceptance of the Makro wholesale concept, all Makro outlets will be converted into SM Hypermarkets in the next few years.
[edit] External links
[edit] References
- ^ Inquirer.net, SM joins $1B casino project, Alliance gains on Star Cruises tie-up SM Prime Holdings currently operates three malls in the southern and western parts of China, namely: Xiamen, Jinjiang and Chengdu. The mall in Xiamen was the first to open in December 2001. It has a gross floor area of 128,000 sq m, almost similar in size to SM City Sta. Mesa and is 100% occupied. SM Jinjiang opened in November 2005 with a gross floor area of 170,000 sq m and occupancy of 74%. Opened last year was SM Chengdu with a gross floor area of 170,000 sq m and an occupancy rate of 71%. Another mall is up for construction in the third quarter and would be situated in Chongqing, southwest China's commercial capital. SM Prime Holdings is spending P1 billion to build the said mall. It will have a gross floor area of 140,000 sq m and is up for completion by 2010.
- ^ Kristine Jane R. Liu. February 26, 2009. "Developers building more malls in time for economic recovery". Business World. SM Prime Holdings
- ^ Zinnia B. Dela Peña. Wednesday, April 29, 2009. "SM Prime earmarks P12 billion for expansion of RP, China malls". Philippine Star. SM Prime Holdings
- ^ Kristine Jane R. Liu. February 26, 2009. "Developers building more malls in time for economic recovery". Business World. SM Prime Holdings
- ^ Honey Madrilejos-Reyes. March 3, 2009. "SM Prime to Build Shopping Complex Near The Fort". Business Mirror. SM Prime Holdings
- ^ Kristine Jane R. Liu and Carmelito Q. Francisco. April 29, 2009. "SM Prime to open one mall every year in mainland China". Business World. SM Prime Holdings
- ^ R. Alluad. February 26, 2009. "SM Prime to Build Santiago Megamall". Business Mirror. SM Prime Holdings
- ^ "SM pushes mall project in General Santos". May 18, 2009. Sun Star. Sun Star
- ^ http://www.accessmylibrary.com/coms2/summary_0286-19986283_ITM SM tycoon opens 'small' Guam outlet
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