Alfamart launches MSME-focused franchising program – BusinessWorld Online
ALFAMART PHILIPPINES, the minimart chain of the SM group, has rolled out its franchising program targeting micro, small, and medium enterprises (MSMEs) seeking to scale their operations.
“By allowing tenants to evolve into franchisees, Alfamart is enabling MSMEs to scale alongside its own expansion, strengthening local communities and livelihoods,” Alfamart Philippines Chief Operating Officer Harvey T. Ong said in a statement on Wednesday.
Alfamart began its franchising pilot in Laguna with two franchise-owned stores.
The first franchise store opened in October last year with Alfamart lessor Leovino C. Datario. The second store opened in August through a partnership with AAU Corp. President and Chief Executive Officer Arles A. Uy, Jr.
AAU Corp. operates 15 Express Clean laundromat branches beside Alfamart stores.
“Alfamart blends the convenience of a neighborhood store with the breadth of a supermarket — a format gaining strong traction across Southeast Asia, particularly among families and communities that value accessibility and affordability,” it said.
Mr. Ong earlier said the company plans to open about 300 new stores this year as part of its nationwide expansion.
As of end-September, Alfamart had 2,337 stores across the country.
The minimart chain operates under a joint venture between SM and Indonesia-based retail company PT Sumber Alfaria Trijaya Tbk.
Alfamart is part of the SM Group’s retail food business. Its products include basic groceries, SM Bonus items, fresh and frozen goods, snacks, and personal care products.
SM Retail, Inc. posted a 10% increase in first-half net income to P8.4 billion from P7.6 billion a year ago. Revenue for the period rose by 8% to P211.8 billion, while food retail revenue grew by 8% to P127.1 billion on the back of store expansions and higher volumes.
On Wednesday, shares of SM Investments Corp. closed flat at P735 apiece. — Beatriz Marie D. Cruz
