Puregold opens 191st store in Davao City
Subscribe Now September 14, 2013 at 09:24am
Puregold Price Club, Inc. opened its 191st store in the country and third in the Davao Region here on Sept. 12.
The first two stores were set up in the cities of Digos and Tagum, but Puregold Vice-President for Operations Antonio E. delos Santos said that there was no grand design to open there before Davao, Mindanao’s prime urban center.
"It just so happened that Digos and Tagum finished first," Mr. delos Santos told local reporters here, during the opening of the store.
Of the three stores, the Davao City one is also the smallest, with only 1,300 square meters of floor space compared with 3,600 sq m for Tagum and 1,600 sq m for Digos. Mr. delos Santos explained that the company found only smaller space for lease in Davao.
He added that the performance of both the Digos and Tagum stores, which opened in June and July, respectively, are within the company’s expectations.
Puregold has set a target of one year before seeing a return on investments in all of its stores, and the stores in this region are said to be at pace to reach the goal.
The supermarket chain is also set to open another store in Bacolod City, its first branch in the Visayas, on Sept. 18.
Mr. delos Santos said that this is part of the company’s aggressive strategy to become a dominant force in hypermarket industry in terms of sales and store location.
In the fourth quarter, Puregold will open two more stores in the cities of Cagayan de Oro and Butuan. The vice-president declined to reveal the company’s total exposure in Mindanao but said: "Suffice to say, we spent enough."
Owned by retail magnate Lucio Co, Puregold operates as a hypermarket and claims to have some of the most competitive wholesale and retail prices. Trailing only SM’s outlets, it is also one of the largest supermarket chains in the Philippines.
In previous announcements by the company, Puregold’s 2013 income was projected to hit P1.5 billion. The firm contributes 60% to the total income of Mr. Co’s listed holding company, Cosco Capital Inc.
Cosco revealed last month that it had earned P1.5 billion in the first six months of the year, which was triple the P410 million it earned in the same period last year. The holding firm also has interests in real estate, liquor, mining and oil storage.
Mr. delos Santos said that, to date, Puregold has 240,000 partner sari-sari stores, with 3,000 having graduated already to become "Gold" members. He also said that the firm aims to secure partnerships with up to 70,000 sari-sari stores in Davao City.
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