SM RETAIL, INC. plans to open at least 200 Alfamart branches in 2026 as it boosts its footprint in communities and deepens its reach among value-seeking shoppers.
SM Retail President Jonathan H. Ng said the company is preparing for another year of expansion as demand for convenience formats remains firm nationwide.
“For Alfamart, we’re expanding somewhere between 200 to 250 stores next year,” he told reporters last week. He said the minimart chain has room to grow in both urban and underserved areas, where its small-box format is positioned to attract daily shoppers.
Alfamart Philippines, a joint venture between SM and Indonesia’s PT Sumber Alfaria Trijaya Tbk, offers a mix of basic groceries, SM Bonus items, fresh and frozen goods, snacks and personal care staples.
The chain ended September with about 2,337 stores across the country, making it one of the fastest-growing minimart operators in the Philippines.
Minimarts have become an important complement to bigger grocery stores as consumers buy food and household items in smaller, more frequent trips. This has helped chains like Alfamart expand rapidly even in markets where traditional supermarkets are already present.
For Alfamart, the push to add as many as 250 stores next year signals confidence that demand in the community retail space will endure despite economic uncertainties.
The chain’s growing network of stores has allowed SM Retail to tap into dense residential areas and smaller commercial zones where large-format stores have limited reach.
Earlier this year, Alfamart opened its business to franchisees, targeting micro, small and medium enterprises that want to run community stores. Mr. Ng said the reception has been positive, adding that the group sees franchising as another way to bolster its presence in more neighborhoods.
The expansion plan also aligns with SM Supermalls’ P150-billion program to build and redevelop properties through 2030. Mr. Ng said Alfamart will open in upcoming SM malls as part of SM Retail’s strategy to sit close to rising foot traffic.
SM Supermalls’ pipeline includes major projects such as SM Sta. Rosa in Nuvali set for completion in 2026, Harrison Plaza in Manila in 2027, SM Malolos in Bulacan by 2028, Cavite in 2029 and Pasay in 2030.
“For next year, we’ll continue to focus on our strength,” Mr. Ng said, adding that the chain adapts its assortment to match shifting consumer preferences.
“We always look at what shoppers are buying and try to bring these into our stores.”
He said political noise has not changed the group’s long-term view. “There’s still a lot of political noise, but we always keep a long-term view. So we will continue to open stores,” he said.
SM Retail also expects a strong holiday season as consumers receive Christmas bonuses and increase spending on food and gifts.
“The fourth quarter is always our strongest quarter historically,” Mr. Ng said. “There’s always a big pick-up in December when the Christmas bonuses come in. Filipino consumers usually spend time with the family during this period, so they go to malls and retail stores.”
Despite the softer bottom line, SM Retail’s scale across multiple retail formats — supermarkets, department stores, specialty shops and minimarts — has helped cushion market swings. For the first nine months, SM Retail posted a 4.69% decline in net income to P12.2 billion from a year earlier. Revenue rose 5% to P318.1 billion, driven by steadier consumer demand for essentials and better foot traffic across malls.
SM Investments Corp., its parent company, reported a 6% increase in consolidated net income during the same period to P64.4 billion, supported mainly by the banking operations of BDO Unibank, Inc. and China Banking Corp. Retail, property and other business segments also contributed steady earnings. SMIC shares closed at P700 each on Thursday. — Beatriz Marie D. Cruz