Philippines’ SM Investments ties up with Alfamart, Indonesia’s leading retailer.
In an experimental deal between two Asian retail giants, Philippines’ SM Investments has tied up with Alfamart, Indonesia’s leading retailer. The move was made by the former to ensue its aim to enter into the convenience store business.
At present, the Philippino giant has three convenience stores with Alfamart in South Manila — Trace Martires and Dasmarinas in Cavite and another in Las Pinas — that will eventully operate 24/7.
The two groups are still exploring the terms of the agreement and have yet to decide the basis of equity sharing.
Being Indonesia’s foremost retailers, Alfamart has 7,000 stores that see more than 2.5 million customers daily, with about 70,000 employees.
SM has enormous footing in Philippines with substantial interests in retail, banking and property development. It operates department stores, supermarkets, hypermarkets, Savemore and Walter Mart stores, apart from SM malls.
So far, the most recent retail partnerships include, Lawson and Family Mart, which are Japanese brands, with the latter being SM’s biggest competition.
Currently, Philippine Seven is the biggest player in Philippines’ convenience store business, which is the local licensee of 7-Eleven convenience stores, with 1,121 stores. On the second largest spot is Ministop, managed by Gokongwei-led Robinsons Retail Holdings, which expects to close the year with 500 stores.