BOI okays PriceSmart request to open more branches in RP

The Board of Investments (BOI) has approved the request of PriceSmart to open more branches.

PriceSmart membership shopping is set to open additional branches along Ortigas Avenue Ext., Cainta, Pasig City; Congressional Avenue, Quezon City; Filinvest Corporate City, Alabang, Muntinlupa; and Fort Bonifacio, Global City.

The BOI expects a capital investment of $830,000 or P43.99 million per store by PriceSmart.

The Investment requirement per store includes the value of assets, tangible or intangible, including but not limited to buildings, a leasehold rights, furniture, equipment, Inventory and common use investments and facilities such as administrative offices, warehouses, preparation or storage facilities.

PriceSmart is a US company engaged in a retailing in the US and Latin America.

Its stock is publicly traded on the Nasdaq Stock Market’s National Market System under the symbol PSMT.

PriceSmart was prequalified under Category B by the BOI to engage in the retail industry under the Retail Trade Liberalization Act.

The Retail Trade Liberalization Act was intended to attract foreign retailers to the Philippines.

However, there have been few applications so far. Aside from PriceSmart, the other approved foreign retailers are Watsons, McDonald’s.

There have been some feelers from other foreign retailers such as the French firm Carrefour and the Casino Gulchard group.

Another US firm, Walmart, is also reportedly eyeing the Philippine market, but nothing concrete has come out of its exploratory talks with local retailers.