Retail business is surpassing its pre-pandemic robustness which the SM group equated to the resurgence of consumers' taste for style.
There is a resurgence in the fashion department with the lifting of community restrictions that drew more crowds in stores and malls, SM Store executive vice president for operations and sales support Dhinno Tiu said.
Moreover, demand for fashion items was spurred by the resumption of school and face-to-face classes and the return to office set-up.
Tiu said with the easing of community restrictions, SM Store's fashion categories which include clothes, shoes, bags, accessories, and beauty, ended the second quarter on a high note, reaching 95 percent of pre-pandemic sales.
"The resurgence of fashion has been driven by more energized spending as the economy reopens. To meet this vibrant demand, we ensure that we provide relevant and up-to-date merchandise and constantly innovate to address the Filipino shopper's ever-changing needs," Tiu explained.
Emerging preferences
Style trends shifted dramatically within a couple of years of the pandemic as people leaned towards comfortable lounge garments. "Athleisure" also emerged to reflect a more adaptable lifestyle.
Another driver of sales is kids who grew up in the two years of the pandemic and needed new clothes.
"People emerged from community lockdowns badly needing wardrobe upgrades to go back to working in offices. As school reopened, there was also a pick-up in demand for school essentials — from shirts, uniforms, socks, shoes to bags and stationery supplies," Tiu indicated.
SM Retail reported an increase of 18 percent in its revenues to P163.7 billion in the first half.
SM Retail's net income also grew by 91 percent to P7 billion due to cost efficiencies in its retail business.