SM Retail targets Gen Z shoppers as their in-store purchases rise (2025)

Apr 14, 2025 7:05 PM PHT

'While Gen X and millennials still lead in terms of purchasing power, we’re strategically investing in Gen Z as they become an increasingly influential consumer group,' says SM Retail executive vice president Jonathan Ng

MANILA, Philippines – Digital natives don’t do everything online.

SM Retail in 2024 saw Gen Zs spending 13% more by buying goods at SM’s physical department stores, prompting the retail giant to strategically invest more to engage with the younger generation.

“Filipino shoppers, especially Gen Z, are more experiential and tactile in their shopping preferences,” SM Retail executive vice president Jonathan Ng said in a statement on Monday, April 14.

“At SM Store, we are dedicated to evolving to meet these expectations, investing in modern store designs and enhancing customer service to stay ahead of the curve.”

The company defines Gen Zs as those born between 1997 and 2012. Citing data from the Philippine Statistics Authority, SM noted that Gen Zs now make up 38% of the country’s population, which is estimated to be around 114.12 million in 2025.

SM is now shifting to marketing to students in their teenage years and workers in their first few years of employment.

“While Gen X and millennials still lead in terms of purchasing power, we’re strategically investing in Gen Z as they become an increasingly influential consumer group,” Ng said.

The company noted that in a 2024 study by The Fourth Wall and Uniquecorn Strategies, they found that 31% of 400 Gen Z respondents prefer shopping in physical stores because of “trust issues” — being cautious about getting scammed online. These are usually the older Gen Zs in their mid to late 20s.

The study also noted that most Gen Z shoppers are in the market for brands that are authentic and aligned with their personalities and beliefs.

A big majority of Gen Zs, however, still prefer online shopping on sites such as Shopee (42%), Lazada (16%), Tiktok Shop (9%), Instagram (2%), Facebook (1%), and Amazon.

But when Gen Zs do shop in person — at least once a week according to a global study by Adyen released in January 2025 — visiting physical stores is an experience, which SM may be well-prepared for with personal shoppers ready to help customers.

“SM is all about excellent customer service,” said Ng.

SM Retail scored a 5% increase in both net income and retail revenues, ending 2024 with P20.9 billion and P434.5 billion, respectively. – Rappler.com

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