MANILA – SM Retail Inc., the retail powerhouse of the SM Group, remains undeterred by “political noise” and is set to push forward with its aggressive expansion plans in 2026, targeting 20-25 new stores across the country. The commitment, reaffirmed by SM Retail President Shawie Zervoulakos on December 15, 2025, underscores the company’s confidence in long-term consumer resilience and economic fundamentals, even as short-term headwinds from governance scandals and election-year uncertainties loom.
The expansion builds on a robust 2025, where SM Retail opened 22 new stores—including flagship formats like SM Supermalls and specialty outlets for Savemore, Alfamart, and WalterMart—bringing its nationwide footprint to over 3,000 locations. For 2026, the focus shifts to underserved provinces and high-growth urban pockets, with a mix of full-line department stores, supermarkets, and convenience formats. “Political noise is temporary; consumer demand and our commitment to accessibility are enduring,” Zervoulakos stated, citing sustained foot traffic and basket sizes despite external distractions.
Key Drivers and Strategy
- Consumer Fundamentals: Strong remittances, BPO growth, and holiday spending underpin confidence, with SM Retail banking on middle-class expansion.
- Format Diversification: Emphasis on smaller, community-focused stores (e.g., Savemore, Alfamart) to capture daily essentials amid inflation concerns.
- Sustainability Integration: New stores incorporate green features like solar panels and energy-efficient designs, aligning with SM’s net-zero goals.
The outlook comes amid a challenging backdrop: The P20-billion flood control scandal, budget delays, and pre-election jitters have dented sentiment, with the PSEi fluctuating and FDI dipping. Yet, SM Retail’s performance—contributing significantly to SM Investments’ portfolio—has held firm, buoyed by essential retail’s defensive nature.
Zervoulakos downplayed risks: “We’ve navigated cycles before—our strategy is long-term, focused on serving Filipino families wherever they are.” The group eyes double-digit growth in same-store sales, driven by omnichannel enhancements and partnerships.
For a conglomerate synonymous with Philippine retail, this 2026 push isn’t just bricks-and-mortar—it’s ballast, proving that in turbulent times, steady expansion keeps the economy (and shopping carts) rolling.
Expansion Snapshot:
| Year | New Stores Opened | Total Locations | Focus Areas |
|---|---|---|---|
| 2025 | 22 | >3,000 | Provinces + urban refresh |
| 2026 (Planned) | 20-25 | Further growth | Underserved regions, essentials |