The rise of SM is intertwined with the life and entrepreneurial spirit of Henry Sy Sr., the patriarch of the Sy family, whose vision transformed a small shoe store into a billion-dollar enterprise.
From its humble beginnings as a small shoe store, SM has grown into one of the largest conglomerates in Southeast Asia. However, behind this success story lies a tale of perseverance and ambition.
SM’s roots trace back to the 1950s, when Henry Sy Sr., a Chinese immigrant, opened a small shoe store in downtown Manila. Born in Fujian, China, Sy arrived in the Philippines as a child, fleeing from the political unrest in his homeland. His family initially ran a small sari-sari store (a neighborhood retail shop), where Sy honed his business acumen by helping his father manage their modest livelihood.
In 1958, Sy ventured into a business of his own, opening ShoeMart in Carriedo Street, Manila. This small store specialized in affordable but quality shoes, catering to the everyday Filipino consumer. His strategy was simple: he wanted to provide stylish yet affordable footwear to the growing post-war population. With a keen understanding of the local market and consumer needs, Sy’s business quickly gained popularity.
The success of this first store allowed Sy to expand his product offerings, moving from shoes to other apparel and eventually into a department store format. His determination and hands-on approach to managing the business were instrumental in the gradual growth of SM in its early years.
Birth of SM Supermalls
The late 1970s marked a significant turning point in Sy’s business journey. Realizing that Filipinos loved the concept of a one-stop shopping experience, he sought to create larger retail spaces where people could shop, eat and enjoy leisure activities all in one place. This led to the opening of SM’s first full-fledged department store in 1972 in Quiapo, Manila.
Building on this idea, in 1985, Sy opened SM City North EDSA in Quezon City, the first large-scale shopping mall in the Philippines. It was a bold move, especially since the country was then in the middle of political and economic turmoil, with many businesses hesitant to invest. But Sy’s vision paid off. Despite initial skepticism, the mall became a resounding success and set the foundation for what would become the SM Supermalls brand.
SM City North EDSA pioneered the concept of malls as “lifestyle destinations,” where people could do more than just shop. It offered dining, entertainment and recreational facilities under one roof. Sy understood the changing needs and aspirations of Filipinos, and he positioned his malls not just as commercial centers but as community hubs.
Expansion and diversification of SM
What started as a single shoe store eventually grew into a massive conglomerate that today spans multiple industries. The SM Group expanded into various sectors, including retail, real estate, banking and even hospitality. The company operates three main divisions: SM Retail, SM Prime Holdings (which manages the malls and real estate developments) and BDO Unibank, the country’s largest bank in terms of assets.
SM Supermalls now operates over 70 malls in the Philippines and several more overseas, including in China. The company has become a major player in the retail and property sectors, developing iconic shopping destinations such as SM Mall of Asia, one of the largest malls in the world.
Apart from malls, the SM Group has invested heavily in residential and commercial real estate through SM Development Corporation (SMDC). The Sy family also ventured into the financial sector, acquiring Banco de Oro (BDO) and turning it into the Philippines’ largest bank. With strategic investments in various industries, the Sy family has built an empire that touches almost every aspect of Filipino life.
Keys to success
The success of Shoe Mart and the SM Group can be attributed to several key factors. First and foremost is Henry Sy Sr.’s vision and leadership. He was a man of great discipline, hard work and humility. He understood the value of customer service, affordable pricing and quality products, which were the foundation of SM’s early success. Sy also demonstrated foresight, identifying opportunities for growth when others hesitated, such as investing in malls during uncertain economic times.
Another crucial factor was SM’s ability to adapt to changing consumer preferences and economic conditions. The company expanded its offerings to cater to the evolving needs of the Filipino market. Moreover, Sy’s commitment to reinvesting profits back into the business fueled further growth and diversification.
Lasting legacy
Henry Sy Sr.’s legacy is more than just a sprawling conglomerate. His rags-to-riches story has inspired countless entrepreneurs in the Philippines. His children have since taken over the reins of the business, but they continue to follow the values instilled by their father: humility, hard work and a commitment to serving the Filipino people.
Today, SM is more than a retail giant — it is an integral part of Filipino culture and daily life. From a humble shoe store to a multibillion-dollar empire, SM’s journey is a testament to the power of vision, resilience and dedication.