MANILA - Henry Sy-led conglomerate SM Investments Corp. (SMIC) is planning to test the local market by converting 2 of its Makro stores into SM Hypermarkets.

According to SMIC Chief Finance Officer Jose Sio, the company will be spending P400 million to P600 million to change its Makro outlets in Novaliches and Makati into hypermarkets. He said some of their customers are no longer attracted to wholesale buying, a concept currently offered by Makro.

SMIC has already converted its Makro outlet in Mandaluyong into a hypermarket. To date, there are 15 Makro outlets in the country, with most of them located in Metro Manila.

Hypermarkets provide wet market products, groceries, general merchandise, and discount items. Makro, on the other hand, is a cash and carry wholesaler which caters more to professional customers such as restaurants, caterers, and small retailers.

Pilipinas Makro, which operates the Makro stores in the country, is originally a partnership between the SM Group, the Netherlands' SHV Holdings NV, and the Ayala Group. By 2004, the Ayala Group sold its 28% interest in Makro to its joint venture partners.

SMIC then folded the Makro outlets into its operations in 2007 after it increased its ownership of Pilipinas Makro to 60%.

Aside from converting Makro stores in the country, SMIC said it is also planning to put up 3 hypermarkets this year. These would be located in SM Fairview, Las Pinas, and Quezon Avenue in Quezon City. On top of these, the company said it would be opening 14 Savemore branches and 2 supermarkets.

Savemore outlets are smaller and carry less variety compared to SM Supermarkets and Hypermarkets. These, the company said, are intended to address the day-to-day needs of customers in the country.