Puregold Price Club, Inc. Provides Capital Expenditure Guidance for the Fiscal Year 2013; Sets Expansion in Mindanao
January 04, 2013
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Puregold Price Club, Inc. announced that it expects its capital expenditures to amount to about PHP 3 billion in 2013, same as its 2012 budget, as it focuses on expanding its presence in Mindanao.
The company announced that it initially targeting the opening of 25 new stores 2013 as the firm targets to have 200 stores by 2015. However, it may have to revise the target since it is already beyond the 150 store mark as of the end of 2012. Growth came on the back of the opening of new Puregold stores as well as the acquisition of S&R Membership Shopping and Parco Supermarkets. Puregold ended 2012 with 156 stores after rolling out 31 new stores last year, including 17 hypermarkets, 10 supermarkets and 4 extras. That store count also includes 19 Parco supermarkets, which will be converted into Puregold stores at the total cost of PHP 200 million, as well as six S&R warehouses. Expansion in 2013 will include the first warehouse store in Davao City and a Puregold store in Cagayan de Oro City, which costs a total of PHP 1 billion for the land acquisition and construction cost, will open around April or May 2013 while the first Puregold in Cagayan de Oro will open in the third quarter of the year.
Puregold Price Club, Inc. is engaged in the business of trading goods, such as consumer products (canned goods, housewares, toiletries, dry goods, food products, pharmaceutical and medical goods and others) on a wholesale and retail basis. The Company operates in the retailing business segment. Its stores are divided into four store models: Hypermarket, Supermarket, Extras and Minimart. It has over 525 retail stores, consisting of 452 Puregold Stores, 22 S&R Membership Shopping Warehouses and 51 S&R New York Style Pizza (QSRs). Hypermarkets offer food and non-food products to retail customers and small business owners (stores include mini-marts, cafeterias, restaurants, bakeries, pharmacies). The Supermarket is primarily located in residential areas and offers a higher proportion of food to non-food products. It maintains two online platforms called, Sally and Rappit and is affiliated with other online delivery platforms, such as Pick-a-roo, Metromart, Lazada, and Shopee.