Success Story Of Henry Sy: Journey from Shoe Store to Billionaire
From a small shoe store to a business empire spanning retail, banking, and real estate, Henry Sy’s story is one of extraordinary perseverance and vision.
As someone who’s walked the entrepreneurial path myself before becoming an angel investor, I find his journey both inspiring and instructive.
Early Life: From War-Torn China to Manila
Henry Sy wasn’t born into wealth. Far from it. Born in 1924 in Jinjiang, China, he moved to the Philippines at just 12 years old. Imagine that—a young boy crossing seas to a foreign land where he didn’t speak the language.
When he arrived in Manila, his family was poor. Their small convenience store was destroyed during World War II. Many would have given up. Not Henry.
At 12, he worked in his father’s small store for 14 hours daily. When the store was destroyed, he sold rejected shoes and other items to make ends meet.
“During the war, I could not go to school, so I learned English by reading the newspapers,” he once shared.
This early struggle planted seeds of resilience that would flower throughout his career. His path wasn’t smooth—it was rocky, steep, and often seemed impossible.
The First SM Store: Small Beginnings
In 1958, Sy opened his first small shoe store in Manila called “ShoeMart.” Yes, that SM—the same letters now illuminating giant malls across Asia.
The store was tiny by today’s standards. But Henry had spotted an opportunity: Filipinos needed affordable but quality footwear. He delivered exactly that.
What made his approach different? Henry didn’t just sell shoes. He studied what customers wanted, traveled to America to learn retail techniques, and focused on creating pleasant shopping experiences.
“You have to have a dream, whether big or small,” Sy often said. “Then wake up and go to work with your dreams.”
And work he did. That single shoe store grew into the Philippines’ largest department store chain.
| Year | Business Milestone | Key Innovation |
|---|---|---|
| 1958 | First ShoeMart opens | Focus on affordable quality |
| 1972 | First SM Department Store | Expanded beyond shoes |
| 1985 | First SM Supermall opens | Pioneered modern mall concept in Philippines |
| 1994 | SM Prime Holdings goes public | Expanded capital base |
| 2006 | SM Investments Corporation becomes largest company in Philippines | Diversified business model |
Beyond Retail: Building an Empire
Henry didn’t stop at retail. His vision extended far beyond shoes and department stores.
In 1985, he opened the first SM Supermall in Metro Manila. This wasn’t just another shopping center—it was a retail revolution for the Philippines.
By the late 1990s, Sy had expanded into:
- Banking (BDO Unibank)
- Real estate (SM Development Corporation)
- Tourism and hospitality
- Education
What’s remarkable wasn’t just the expansion but the timing. When the Asian Financial Crisis hit in 1997, while others retreated, Henry advanced. He bought distressed properties and companies, seeing opportunity where others saw disaster.
“In good times, I do my normal work. But in bad times, I work twice as hard,” he explained.
This counter-cyclical approach—investing heavily during downturns—became a signature Sy strategy.
Business Philosophy: Customer First, Always
What drove Henry’s decisions? A relentless focus on customer needs.
SM malls weren’t just places to shop. They became community centers offering one-stop experiences with:
- Grocery stores
- Entertainment options
- Banking services
- Dining choices
“The malling culture in the Philippines—that’s Henry Sy’s legacy,” notes retail analyst Marie Santiago. “He understood Filipinos wanted comfortable, all-in-one destinations.”
His business philosophy included several key principles:
- Start small, think big
- Reinvest profits for growth
- Focus on customer experience
- Diversify intelligently
- Adapt to changing markets
Perhaps most importantly, Henry maintained a hands-on approach even as his empire grew. Well into his 80s, he still walked his malls, observing customers and store operations firsthand.
Building Wealth Through Real Estate
Henry’s genius went beyond retail. He recognized early that land ownership would be crucial to long-term wealth.
“Land is a good investment; it’s scarce, especially in urban centers,” he once explained.
SM Prime Holdings became one of Asia’s largest property developers, with properties strategically acquired years before development boomed around them.
Each mall followed a formula:
- Build in emerging areas before prices soared
- Create destinations that attracted other businesses
- Develop surrounding properties as values increased
This approach turned SM into both a retail powerhouse and a real estate giant.
Family Business: Succession Planning Done Right
Unlike many family businesses that falter in the second generation, Henry prepared his children thoroughly. Each of his six children received specific training and responsibilities:
- Teresita (banking)
- Elizabeth (retail)
- Henry Jr. (real estate)
- Hans (SM Investments)
- Herbert (SM Prime)
- Harley (gaming)
By giving each child distinct areas while maintaining family unity, Sy created one of Asia’s most successful succession models.
“My children were trained early. They worked even during weekends and holidays,” Henry once shared.
Impact on Philippine Economy
Henry’s business activities fundamentally reshaped the Philippine economy:
- Created hundreds of thousands of jobs
- Introduced modern retail practices
- Helped develop the banking sector
- Contributed to urban development
- Pioneered corporate social responsibility programs
By 2018, SM’s businesses accounted for nearly 3% of the Philippines’ entire GDP.
Beyond numbers, he changed how Filipinos shop, bank, and even spend leisure time. The “malling culture” he pioneered became central to urban Filipino life.
Lessons for Entrepreneurs
As an entrepreneur turned investor myself, I find several powerful lessons in Henry’s journey:
Start where you are. Henry began with a single shoe store, not a grand conglomerate.
Solve real problems. SM stores addressed specific consumer needs, not abstract concepts.
Reinvest aggressively. For decades, Henry poured profits back into growth rather than luxury.
Build during downturns. His countercyclical investments during crises created massive advantages.
Think ecosystems, not products. SM evolved from selling products to creating comprehensive experiences.
Stay close to customers. Even as a billionaire, Henry regularly walked his stores to observe firsthand.
The Human Side of Henry Sy
Beyond business achievements, Henry maintained remarkably simple personal habits. Despite becoming the richest man in the Philippines, he:
- Woke at 5 AM daily
- Ate simple meals
- Maintained a modest personal office
- Focused on family time
“Money should be used to create more and better jobs,” he once said, reflecting his view that wealth carried responsibility.
Through the SM Foundation, he funded:
- Over 1,500 college scholarships annually
- School building programs
- Medical missions serving millions
- Farmer training initiatives
TL;DR
Henry Sy transformed from a poor immigrant boy into Asia’s retail king through extraordinary perseverance and vision. Starting with a small shoe store in 1958, he built a business empire spanning retail, banking, and real estate. His customer-first approach, strategic investments during economic downturns, and focus on developing both his businesses and his children as leaders created lasting impact. Beyond wealth, his legacy includes transforming Filipino consumer culture, creating hundreds of thousands of jobs, and establishing one of Asia’s most significant philanthropic foundations.
Q&A About Henry Sy
Q: What was Henry Sy’s first business in the Philippines? A: His first personal business was a shoe store called ShoeMart (now SM) that he opened in 1958 in Manila.
Q: How many SM malls exist today? A: As of 2023, there are over 80 SM malls across the Philippines and several in China.
Q: What was Henry Sy’s net worth when he died? A: When Henry Sy passed away in 2019, his net worth was estimated at approximately $19 billion, making him the richest person in the Philippines.
Q: Did Henry Sy have formal business education? A: Yes, he studied commercial studies at Far Eastern University in Manila, though much of his business knowledge came from practical experience.
Q: How did Henry Sy handle the Asian Financial Crisis of 1997? A: Unlike many businesses that contracted, Sy expanded during the crisis, buying distressed properties and businesses at favorable prices, demonstrating his countercyclical investment approach.
The Henry Sy Entrepreneurial Mindset Quiz
Take this quiz to see if you share some of Henry Sy’s entrepreneurial traits!
1. When facing major obstacles, do you typically: a) Look for ways around them b) Wait for conditions to improve c) Change your goals to something easier
2. How do you view economic downturns? a) Primarily as opportunities to expand while others retreat b) Times to maintain current operations carefully c) Periods to minimize all business activities
3. When making business decisions, what’s your primary focus? a) Customer needs and experience b) Competitor activities c) Short-term profit maximization
4. How important is diversification to your business strategy? a) Essential—I actively seek complementary business opportunities b) Somewhat important, but secondary to core business growth c) Not important—I prefer focusing on one area of expertise
5. How do you approach wealth and success? a) As tools to create more opportunities and jobs for others b) As personal rewards for hard work c) As primary goals in themselves
Answers:
- a – Henry consistently found ways around obstacles rather than letting them stop him
- a – He famously expanded during economic downturns
- a – Customer experience was central to SM’s success
- a – Strategic diversification into banking, real estate and other sectors was key to his empire
- a – He viewed wealth as a means to create more opportunities and jobs
Scoring:
- 5 “a” answers: You share Henry Sy’s entrepreneurial mindset!
- 3-4 “a” answers: You have strong entrepreneurial instincts similar to Sy’s approach
- 1-2 “a” answers: You have some entrepreneurial traits but might benefit from adopting more of Sy’s strategies
- 0 “a” answers: Your approach differs significantly from Sy’s entrepreneurial mindset
Key Statistics About Henry Sy’s Business Empire
- Created over 200,000 direct jobs across SM companies
- SM Prime Holdings became Southeast Asia’s largest property developer by market capitalization
- BDO Unibank grew to become the Philippines’ largest bank by assets
- SM Foundation has provided over 8,000 college scholarships since its founding
- By 2018, SM malls were receiving an estimated 3.5 million visitors daily
Henry Sy’s journey proves that extraordinary success often begins with the simplest foundations: hard work, customer focus, and the courage to seize opportunities others miss. As entrepreneurs, we can all learn from his remarkable path.
