SMU S.A. (“SMU” or the “Company”) (Santiago Stock Exchange: SMU) announced its investment plan for the 2025-2029 period, featuring capex of US$600 million and initiatives including organic growth, such as store openings and remodels, as well as investments in operating efficiency and maintenance capex.

The largest share of the investments—approximately 60%— will go towards organic growth initiatives, including the opening of 115 new stores: 80 in Chile, where 50% will be Unimarc stores and the other 50%, Alvi and Super10, and 35 stores in Peru, under the Maxiahorro banner. In addition, the Company plans to remodel or convert over 200 stores. As such, SMU will continue the accelerated pace of store openings that it has been carrying out in recent years.

SMU’s chief executive officer, Marcelo Gálvez, stated, “SMU’s investment plan for the next five years reaffirms our focus on growth. With 115 new stores, including 80 in Chile, we will be closer to our customers, reaching 179 municipalities in the country and covering over 90% of the population.”

In addition, between 15% and 20% of capex will go towards efficiency and productivity initiatives, including technological tools that improve efficiency throughout the Company’s operations, including processes that take place in stores, the distribution network and back office. The remaining 20-25% is maintenance capex, including the renewal of IT equipment, as well as equipment used in stores and distribution centers. The plan will be financed using cash generated by the Company’s operations, without the need to increase debt.

With respect to 2025, the plan includes capex of US$120 million, including 24 store openings: eight for Unimarc, four for Super10 and four for Alvi, in Chile, and eight for Maxiahorro, in Peru. In addition, the Company will remodel more than 30 stores and invest in the expansion of its distribution network.

Mr. Gálvez added, “We are currently in the final year of our three-year strategic plan for 2023-2025, and in the first two years of the plan, we have already made great progress, not only in the implementation of the initiatives, but also in the results. For example, the 34 stores we opened between 2023 and 2024 on average are outperforming the budget in terms of sales and EBITDA, which shows that we are choosing the right locations and the right formats for each location. This new growth plan that we are announcing will allow us to take advantage of the strong execution capacity that we have developed as a company, as we continue to invest in profitable and sustainable growth.”