Shopping mall operator SM Prime Holdings Inc. said it is investing some P100 million to upgrade its e-commerce platform, which will connect brick and mortar stores to their customers, in keeping with pandemic-induced changes in consumer behavior.
“We acknowledge the growing popularity of e-commerce especially during the pandemic and SM Prime is allocating up to P100 million to accelerate our online presence with our e-commerce platform,” SM Prime President Jeffrey C. Lim said during the company’s stockholders’ meeting conducted online.
“We will start with the click and collect which enable our tenants and our customers to meet virtually in the platform. Moving forward we see e-commerce as a strategy to complement our malls business and connect our retail tenant to our customers.”
SM Prime earlier said it is maintaining its P80-billion capital expenditure allocation for 2020 to focus on projects that will deliver sustainable returns in the long term. The company said it will continue to explore opportunities in its acquisitions and investments.
“We believe that in crisis like this, flight to quality will be the driver for consumers and buyers, and SM has the solution and right product,” said SM Prime Chairman Henry T. Sy Jr.
He said people tend to go to the malls in times of crisis, such as during the 1998 financial crisis and the 2008 sub-prime crisis.
“During these times, we see trend in customer response. People continue to go to SM due to our flight to quality. We see the same trend today even during the quarantine period as evidenced by the surge of the condominium sales. We give the best quality for money and that’s what SM stands for.”
SM Prime income fell 5 percent for the first quarter of the year to P8.3 billion P8.8 billion last year.
Revenues declined 3 percent to P25.8 billion from P26.5 billion last year.