TWO more wholesaler Makro outlets in Metro Manila would be converted into SM Hypermarkets before the end of the year, the holding company of the Sy family said.

Jose Sio, SM Investment Corp. (SMIC) executive vice president and chief finance officer, said the group is spending P200 million to P300 million for the conversion of each Makro outlet. Its operations are currently being streamlined by management.

SMIC has a 60-percent interest in Pilipinas Makro Inc., which has 15 outlets located in Pampanga, North Harbour in Manila, Mandaluyong, Imus in Cavite, Batangas, Novaliches, Sucat in Parañaque, Las Piñas, Cainta in Rizal, Makati, Cubao, Iloilo, Cagayan de Oro, Davao and Cebu.

The Makro outlet in Mandaluyong has already been converted into another SM Hypermarket.

“It is not being refurnished. We’re converting Makro into Hypermarket. I understand some of the 13 areas, we’re still not comfortable of opening,” Sio said in a recent interview.

“But out of the areas that we have identified, two more will be converted will be converted,” he added.

Robert Kwee, SM Hypermarket executive vice president, said these two Makro outlets are in Novaliches, Quezon City and in Osmeña Highway in Makati City.

“Right now, Makati and Noveliches have been closed down. Makati will be reopened by end of September, while Novaliches will be in last quarter,” Kwee said.

Established in 1995, Makro caters to professional customers like hotels, restaurants, caterers and small retailers and service-end-users.

Sio said SMIC expects that a big chunk of its earnings this year will come form its retail business, which already accounts for 39 percent of its total income during the first semester.

The holding firm said the healthy growth in SM Retail was due to cost efficiency and expansion, particularly with the rise of the smaller supermarket format like Save More stores.

At end-June, SMIC’s earnings grew by 14 percent to P7.4 billion from P6.5 billion in the same period last year.

Sio said with the growth in the first six months, the company is seen to sustain a profit growth of at least 12 percent for the remaining months of the year.

“We’re fully confident that we can sustain that. We can exceed the 12-percent growth target,” he added.