While commercial giant SM Investments continued to achieve positive profit growth with 2017 figures, it somewhat experienced a slowdown on the same period where its retail arm saw a slight drop in earnings.
This was according to a Nikkei Asian Review report, noting that the net income of the conglomerate’s retail business slightly diminished to P10.4 billion from P10.6 billion as the profit growth of 6 percent for 2017 was registered.
It is 2 percent slower than 2016’s 8 percent recorded progress.
It was mentioned, however, that SM did not give an explanation during its disclosure to the Philippine Stock Exchange Wednesday.
Nonetheless, the company still increased in profit, boosted by its property and banking ventures, according to Inquirer.net. Also, SM Retail’s revenue was “up by 7 percent”, as reported in the same article.
But with the advent of the e-commerce industry, what do these figures tell?
Nikkei pointed out that the company may be propelled “to step up its e-commerce strategy, which received a boost from a recent investment in a logistics company”.
Quoting Chairman Jose Sio’s response in an interview with the Philippine Daily Inquirer, the report said that the conglomerate is expecting and preparing for the moment when e-commerce will have the upper hand over traditional retail.
Currently, SM’s department store chain The SM Store is selling products through its website.
Featured photo from The SM Store’s website