SM Retail balances digital growth with store relevance

The retailer is expanding e-commerce and social engagement whilst keeping physical stores central to how younger shoppers discover and experience the brand.

SM Retail is expanding its digital channels whilst keeping physical stores central to its strategy as Generation Z and millennials take a larger role in shaping Philippine retail demand, Edwin Yap Hawson, Chief Commercial Officer of SM Retail, said in an interview during the 32nd National Retail Conference and Expo in Manila.

“Despite all of the challenges, there's still very good growth in retail,” Hawson said. He added that SM Retail has had to adjust assortments more quickly as customer needs shift, whilst household spending continues to support the broader market.

Younger shoppers are influencing how the company designs both product and channel strategies. Hawson said SM Retail is paying closer attention to how Generation Z engages with brands, particularly through social media, digital platforms and e-commerce. “What's really shaping the way we go is understanding the trends, the needs, and the different ways that the Gen Z engage with brands and with retailers,” he said.

At the same time, SM Retail is working to keep its physical locations relevant rather than treating digital growth as a substitute for stores. The retailer is integrating online and offline touchpoints so customers can discover products in one channel and continue the shopping journey in another, whilst maintaining stores as destinations for younger consumers.