Does SM have it all? Customer obsession takes center stage

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Notes on the beat

MANILA, Philippines — “We’ve got it all for you.”

A simple phrase, matched with a catchy jingle, has now become synonymous with SM, epitomizing the Sy family’s mall empire, which last year contributed P85.1 billion or 60 percent of total revenues of listed integrated property developer SM Prime Holdings.

“It resonates very well with the public until now,” SM Supermalls president Steven Tan told The STAR, referring to the enduring popularity of the slogan, which the company has used since the 1980s.

“But we do have some plans of launching another tagline very soon,” Tan said.

Replicating the success of such a hit may be considered a Herculean task for the SM team, but the group is up for the challenge, especially with Tan at the helm.

When it comes to knowing what customers want, Tan learned from one of the retail industry’s best, no less than SM founder himself, the late Henry Sy Sr.

“I started my career in hospitality, learning service from the ground up across Asia. Yes, I really started from the very bottom. Right after graduation, I remember I was on a management training program in Taipei, and I cleaned toilets and I made beds, and this is perfectly OK, because that really is life, right?” he said during the recent Philippine Retailers Association Retail Leaders Summit.

Tan joined the SM Group in 2004, playing a key role in the development of The Podium before leading the launch of SM Mall of Asia in 2006.

From cleaning toilets, he then led major developments and served in senior operating roles. Today he leads the country’s largest mall group with a portfolio of 90 operational shopping centers in the Philippines, as well as nine malls in China.

“Through this journey, I realized that leading the retail industry today requires three essential traits. First, listening to our customers and stakeholders, which means remaining connected, grounded and engaged with the people we serve,” Tan said.

“Second, the ability to balance and staying true to your roots with your strong pursuit of your vision. This requires agility and actively pursuing innovation, feedback and even disruption. And third, being purposeful drivers of change, inspiring your teams to welcome shifts that matter, both to our employees and our customers,” he added.

Tan admitted that SM has a customer obsession, a kind that has guided the group in ensuring that as it grows, it also stays true to the legacy of elevating every experience.

“I share this because my journey mirrors SM’s journey. As our malls, customers and responsibilities grow, one principle remains constant, that’s customer obsession,” he said.

SM’s role, Tan said, is to elevate the industry for the sake of its customers by transforming retail spaces into community hubs that foster social inclusion and economic opportunity.

He said the company does not just construct malls – it builds the “great Philippine public square,” with  each mall serving a different market with different needs and cultural context.

“Our responsibility is simple but demanding: to deliver a consistent SM experience while respecting what makes each community unique. That balance of familiarity and local relevance is what customer obsession looks like at scale,” he said.

According to Tan, the late Henry Sy Sr. or “Tatang” as they fondly called him, believed that every decision should begin with understanding the customer.

He said that for Tatang, SM was never just about retail – it was about creating a place where people felt welcome and valued.

Tan recalled a a story that captures the late taipan’s deep empathy and commitment to customers, a belief which he said shaped SM’s culture and continues to guide how it serves its communities up to the present.

“When the Mall of Asia opened back in 2006, Tatang was walking through the SM Store, our department store. He suddenly stopped, quietly inspected each item, but he wasn’t focused on sales numbers or inventory. Holding a sandal in his hand, he asked a simple but very powerful question. Can our customer still afford to buy this?” Tan said.

“For Tatang, this wasn’t just about business, it was about understanding and connecting with our customer on a personal level,” he added.

Tan also shared a story involving another key member of the Sy clan, this time Hans Sy, the fourth of Tatang’s six children, and a key lesson he learned when it comes to prioritizing people, especially during tough times.

“When the pandemic hit, many companies focused on minimizing losses. But with Mr. Hans, he took a different approach. He led with compassion, asking key simple yet powerful questions,” Tan said.

“The first question goes, what shall we do with our employees? So the answer was, even if they don’t need to come, they have to survive, just pay them their salary. The second question was, how about our service crew, the janitors, the security guards, what shall we do? The answer was, let’s pay them, but give it directly to them. The third question, how about our tenant partners who have supported us all throughout these years? The decision was, do not charge rent. If they don’t open, no rent,” he added.

Tan continued: “I was waiting for the fourth question, but that fourth question never came. I thought I knew the company very well, and I thought I knew the Sy family very well. But I was wrong because I was expecting questions on how about SM? How about our financial statement? Don’t forget, we are a publicly listed company. But that question actually never came because he said, okay, meeting dismissed.”

In a time of uncertainty, Tan said Hans, who currently chairs the executive committee of SM Prime, insisted that the company prioritize the well being of its people.

Hans’ leadership, he said, showed that true customer obsession means standing by customers, partners and employees, both in good and challenging ones.

“His message was clear. SM is not just a shopping destination, but a place that cares deeply for its community, especially in times of need,” Tan said.

These lessons and values Tan learned from the Sy family continue to guide him as he leads SM Supermalls in its continuing growth and expansion.

From the wide array of products and brands it offers to delivering exceptional customer care, SM may truly have it all.

But in an ever-evolving retail landscape, customers tend to always want more.

“There’s a lot of good global brands, but you know, equally, there’s a lot of good local brands also that we have to nurture and really encourage to scale. I’m a true believer of good local brands. There are many restaurants, for example, that are not yet in the malls that we are also tapping and trying to make it a bit more accessible to Filipino consumers,” Tan said.