SM’s ‘We’ve Got it All For You’ strategy captures growing Gen Z market

The SM Store offers a broad product range that appeals to different market segments, making it a one-stop shop for all.

SM Investments Corporation’s (SM Investments) retail arm, SM Retail, Inc., is reaching new consumer markets, particularly the rapidly growing Gen Z demographic. Data from the SM Store, the department store business of SM Retail, reveals a 13% increase in in-store purchases by young shoppers in 2024, signaling a shift in consumer behavior and a rising preference for physical retail experiences.

“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. 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. Filipino shoppers, especially Gen Z, are more experiential and tactile in their shopping preferences. At SM Store, we are dedicated to evolving to meet these expectations, investing in modern store designs and enhancing customer service to stay ahead of the curve. SM is all about excellent customer service.” ~Jonathan Ng, Executive Vice President at SM Retail

This increase in Gen Z shoppers reflects the growing purchasing power of this demographic.

Gen X, ages 45 to 60, are those born between 1965 and 1980, and Millennials, ages 29 to 44, are born between 1981 and 1996. Gen Z, ages 13 to 28 or born between 1997 and 2012, currently makes up 38% of the Philippine population according to the recent census by the Philippine Statistics Authority.

With 41 million Gen Zs, SM Retail is well-positioned to capitalize on this segment. A 2024 study by The Fourth Wall and Uniquecorn Strategies revealed that 31% of Filipino Gen Zs prefer shopping in physical stores, valuing the experience of products they can see and touch.

This trend mirrors a broader global shift. A January 2025 report by Adyen, published by Retail Dive, found that nearly three-quarters of global Gen Z consumers shop in-person at least once a week, viewing it as an integral part of their lifestyle.

SM Retail has also focused on improving the customer experience through strategic partnerships, such as one with Coffee Bean and Tea Leaf (CBTL), which aims to create a more delightful in-store environment.  This emphasis on in-store savings, convenience, and the chance to instantly own things is consistent with Generation Z's desires.

Noting the presence of personal shoppers who are always ready to assist customers.

SM shop continues to innovate, adapting its inventory selection, shop layouts, and overall customer experience to match the demands of a rapidly changing retail landscape.  This dedication to quality is evident in SM Retail's strong financial success.  In 2024, the company reported a net income of PHP 20.9 billion, a 5% rise over the previous year, with retail revenues up 5% to PHP 434.5 billion, up from PHP 412.9 billion in 2023.

SM Retail's continued development and ability to engage with various customer categories strengthens its leadership position in the Philippine retail market, contributing considerably to the group's parent company, SM Investments' outstanding financial performance.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visit www.sminvestments.com

For inquiries, please contact: smic_corpcomm@sminvestments.com