The coronavirus is shaking the business landscape pushing SM Prime Holdings to invest P100 million in e-commerce to meet the changing consumer behavior.
“We acknowledge the growing popularity of e-commerce, especially during this pandemic, and SM Prime is allocating up to P100 million to accelerate our online presence with our e-commerce platform,” said SM Prime President Jeffrey C. Lim in the company’s annual stockholders’ meeting Monday.
SM Prime will leverage e-commerce to respond to the retail shifting trends as consumers are turning to online shopping due largely to government measures in place to contain the virus.
The company will start with the click and collect allowing tenants and customers to do business in the platform.
“We see e-commerce as a strategy to complement our malls business and connect our retail tenant to our customers,” Lim added.
Despite a weaker performance in the first quarter, SM Prime said it will maintain its P80-billion budget for capital expenditures this year to prioritize investments that delivers favorable returns.
Its earnings drop 5% to P8.3 billion as a result to mall closures in the Philippines and China.
According to SM Prime Chairman Henry T. Sy, Jr., he expects consumer demand to stabilize in the coming weeks with the easing of quarantine restrictions.
“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,” Sy added.