From shoe store to Philippines’ largest conglomerate: how Sy family builds, sustains empire

SM Investments, the conglomerate led by the Sy family, is the Philippines’ largest by market value and owns several of the country’s biggest firms, including property giant SM Prime Holdings and lender BDO Unibank.

But the giant, whose revenues amounted to 462.5 billion pesos (US$7.9 billion) in the first nine months of 2024, originated from much humbler beginnings, starting as a shoe shop founded by the late Henry Sy Sr., who was ranked number one on Forbes magazine’s Philippines Rich List for eleven consecutive years before passing away in 2019.

He left China when he was 12 to move to the Philippines with his father and help out with his small sundry store. Driven by a desire to improve his family’s future, he later entered the shoe business after World War II, opening his first store, ShoeMart (SM), in downtown Manila in 1958, according to Philstar.

Dedicated to finding innovative solutions, he implemented bold ideas to meet the changing demands of his customers and employees. One such move was air-conditioning the store, a bold decision at the time that made shopping more comfortable and won him the favor of customers.

The store proved successful, marking the beginning of the Sy business empire.

The profits from ShoeMart fueled his ambitions and provided him with the foundation to expand into various ventures during the 1970s and 1980s. Over time, his business grew into a dynamic conglomerate with interests in retail, banking, and property.

He faced many challenges throughout his career, from the martial law era in 1972 to the series of military coups in 1987-89, and, perhaps most challenging of all, the 1997 Asian financial crisis. Yet, he successfully adapted his business to meet the evolving needs of Filipinos, all while maintaining an optimistic outlook.

“Crises produce opportunities. And I believe, like in the past, we can handle the situation,” he once said. “In good times, I do my usual work. But in bad times, I work harder.”

Despite being a businessman with a packed schedule, he was known to also prioritize giving back to the community.

He founded the Henry Sy Foundation, dedicated to empowering Filipino youth by giving grants to educational institutions. He also made substantial donations toward scholarships and infrastructure over the years to elevate the country’s education system.

“Not everything I do is purely for money,” Tatler Asia quoted him as saying. “Of course, as a businessman and as head of publicly listed companies, we have to earn, but at this point in my life, there are other considerations more important besides just money.”

He was married to Felicidad Tan, who was a shoelace vendor, and was affectionately called “Tatang,” meaning “dad” by those who knew and loved him.

Henry Sy Jr., chairman of the Philippines’ shopping mall giant SM Prime attends a shareholders’ meeting in Manila on April 14, 2015. Photo by AFP

Though he passed away in 2019, his legacy lives on through the various endeavors continued by his six children, as reported by The Business Times.

His eldest daughter, Teresita Sy-Coson, 74, currently serves as the vice-chairperson of SM Investments and the chairperson of SM Retail, the conglomerate’s retail arm, and BDO Unibank.

She has a net worth of $1.8 billion, as estimated by Forbes magazine as of Jan. 14, making her the richest woman in the Philippines.

She acknowledged that being the daughter of a billionaire business owner gave her an advantage, but strived to work diligently to dispel any notion that her success was due to her family’s status.

“You have to really prove yourself to earn respect,” she said.

Under her leadership, BDO Unibank has emerged as the Philippines’ largest bank by total assets, boasting a network of over 1,500 branches and around 5,000 ATMs nationwide, the Daily Tribune reported.

The second eldest, Elizabeth Sy, 72, plays a key role in the family’s hospitality business as the chairwoman and president of SM Hotels and Conventions. The subsidiary oversees a total of 1,980 rooms and more than 38,000 square meters of leasable convention space. Her net worth is valued at $1.7 billion.

Eldest son and namesake Henry Sy Jr., 71, is the vice-chairperson of SM Investments and the chairman of the family group’s property arm, SM Prime. He currently has the highest net worth among the six siblings, at $2.3 billion.

He collaborated with Tesla CEO Elon Musk in 2022 to introduce a satellite broadband service in the Philippines.

Hans Sy, 69, the fourth child, serves as the chairman of China Bank, a subsidiary of SM Investments, and chairs the executive committee of SM Prime. His net worth is valued at $2.1 billion.

Herbert Sy, 68, who is a director of both SM Prime and China Bank, has a net worth of $2 billion and the youngest sibling, Harley Sy, 65, holds the position of executive director at SM Investments and is also a director at China Bank, with a net worth of $1.9 billion.

Though the group’s daily operations are now managed by outside professionals, the siblings remain actively involved in different aspects of the business and committed to their father’s guiding principle: innovation.

“Innovation is key to staying relevant. The market is always changing, and we must evolve with it. Tatang was a constant innovator, reinventing himself—from shoes to department stores, malls, specialty stores, and to what SM is today,” Harley said, as quoted by Insider PH.

“We will continue to adapt to the market’s aspirations.”