SM Retail targets Gen Z with in-store shopping surge

About 31% of Filipino Gen Z prefer in-store shopping.

SM Retail, Inc., the retail arm of SM Investments Corporation, is focusing on Gen Z, driven by a 13% rise in in-store purchases by young shoppers at SM Store in 2024.

The company said that this surge signals a significant shift in consumer behavior towards physical retail.

Gen Z, now 38% of the Philippine population, is becoming an influential consumer group. “Whilst 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,” said Jonathan Ng, executive vice president of SM Retail.

Citing a study by The Fourth Wall and Uniquecorn Strategies, the group noted that 31% of Filipino Gen Z prefer in-store shopping. This also aligns with global trends, as a January 2025 Adyen report indicates that nearly 75% of Gen Z shoppers worldwide shop in-person at least once a week.

“Filipino shoppers, especially Gen Z, are more experiential and tactile in their shopping preferences,” said Ng.

SM Retail’s strategic partnerships, such as with Coffee Bean and Tea Leaf (CBTL), are aimed at improving the in-store experience. The company is also emphasizing convenience, discounts, and personalized service to attract and retain Gen Z shoppers.

In 2024, SM Retail posted a net income of PHP20.9b, marking a 5% increase from the previous year, with retail revenues growing by 5% to PHP434.5b, up from PHP412.9b in 2023.