MANILA, Philippines - Lucio Co-led grocery chain Puregold Price Club Inc. is branching out in Mindanao with the opening of its flagship store in Cagayan de Oro and an S&R Membership Club in Davao as part of plans to hit its 200-outlet target ahead of schedule.
Puregold president Leonardo Dayao said the country’s second biggest supermarket operator has earmarked P3 billion to build 25 new stores this year and increase its current 150-branch network.
The firm’s strategy is to build at least 25 new stores over the next five years to sustain its growth, he said.
“We want to expand in areas where we have no presence yet such as the southern part of the country which is Visayas and Mindanao,” Dayao said.
Including S&R’s six branches, Puregold’s total store network now stands at 156. S S & R branches are located in Bonifacio Global City, Congressional Ave. in Quezon City, Alabang in Muntinlupa, Aseana Business Park in Baclaran, San Fernando in Pampanga, and Mandaue City in Cebu.
“We’re very much ahead of our target. We earlier said we wanted to double the 100 stores to 200 by 2015. But it seems we would achieve our goal ahead of schedule,” said Jimmy Perez, head of investor relations at Puregold.
Dayao said the group is set to open an S&R warehouse in Davao in the second quarter and another one at the former site of Cherry Foodarama on Shaw Blvd. either late this year or early 2014.
The upcoming S&R outlet in Mandaluyong will rise on a one-hectare property and will be developed at a cost of over P1 billion.
Puregold is also set to open its Cagayan de Oro outlet in the third quarter this year.
“Davao and CDO are the two most important trading centers in Mindanao. You expand from there even within the city itself. You expand through smaller formats,” Dayao said.
He said the group is also looking at Panay, Negros, Cebu, Leyte, Samar, and Bohol as future expansion sites.
He said the company remains open to acquisitions as it is in informal discussion with a few parties, which he refused to name.
Funding will come from proceeds of a recently-concluded fixed-rate corporate notes issue amounting to P5 billion.
The company acquired 100 percent of S&R Membership Club through a P16.5 billion share-swap deal, allowing the Co family to consolidate all retailing businesses under a single publicly-listed corporation targeting all market segments.