SM Group opens three Alfamart stores south of Mega Manila

SM Investments Corp. is testing the waters for a convenience store business by opening three Indonesian brand Alfamart stores in the densely populated south of Mega Manila a company official said Thursday.

 

The Sy-led conglomerate partnered with Indonesia's largest chain of convenience stores Alfamart as its plans to venture is small retailing business, SM Supermarket president Jose Maria Mendoza told reporters on the sidelines of SMIC's first half briefing in Taguig City.

 

"The whole thing is exploratory and experimental but we have a strong coordination with them," he said. "We're used to big formats. That's one we're experimenting on," Mendoza said.

 

Last April, SM Investments Corp. announced plans to enter the convenience store business starting this year as competition began to sizzles in this segment.

 

With 7,000 stores across Indonesia, Alfamart is currently one of the leading retailers in the Muslim country and serving more than 2.5 million customers daily, according to information on its website.

High traffic
 

In the last three weeks, SM opened the same number of Alfamart stores in Las Piñas City, Trece Martires and Dasmariñas in Cavite. Up to four more are underway in the same area, the company official said.

 

"That particular area in the south... You have high population density, traffic, and a combination of urban and rural scenario. It's a good mix for us to find out if that particular format will work," Mendoza said.

 

Results of the experimental stage will dictate where the group is taking this particular venture – moving forward, he added.

 

"That is what we're also gauging. We're also building confidence, and once we see there's momentum then we will make our conclusions and take it from there," Mendoza said.

 

Unlike other convenience stores, Alfamart offers fresh food items like vegetables, dressed chicken and medicine on top of the basic grocery and food-to-go items in its 150-square meter store.

 

"In Indonesia they call it a 'minimart.' But in the Philippines, our shoppers will classify it as convenience stores given the size," Mendoza said.

Convenience stores

Last June, Puregold Price Club Inc. entered into a joint venture agreement with Lawson Asia Pacific Inc. and Lawson Inc. to open Japan-based Lawson Inc. convenience stores in the Philippines.

 

In November 2012, Ayala Land and joint venture partner Rustan's Group brought in Japanese convenience store FamilyMart after signing a shareholders' agreement with FamilyMart Co. Ltd. and Itochu Corp.

 

The Villar group of former Senator Manuel B. Villar is also joining the fray via the homegrown brand All Day which was originally called Finds Store.

 

The Gokongwei group, under Robinsons Convenience Stores Inc., has been operating Mini Stop since 2001. Mini Stop is another Japanese convenience store chain owned by Mitsubishi Group of Japan.

 

Meanwhile, Philippine Seven Corp. is the local franchise holder of 7-Eleven convenience stores. – VS, GMA News