Puregold upgrades sales target

MANILA, Philippines - Puregold Price Club Inc., the nation’s second biggest retail operator has doubled its sales growth target for the year to 50 percent, from on earlier goal of 25 percent, as more new stores are lined up for opening.

In a disclosure to the Philippine Stock Exchange yesterday, Puregold said net sales are now seen to hit P58.5 billion this year from P39 billion in 2011 on the back of new store openings.

In the first half of the year, Puregold reported a net income of P1.03 billion, up 32 percent from P783 million in the same period in 2011. Net sales grew 34 percent to P23.28 billion.

The opening of new stores in 2011 contributed 68.2 percent of the total increase in net sales.

Puregold likewise said it is increasing the number of stores it would open this year to 31 from the original goal of 25 to take advantage of strong consumer spending.

The group currently has a total of 134 stores, comprising 109 Puregold outlets (66 hypermarkets, 32 supermarkets and 11 discounters), six S&R Membership Shopping Club and 19 Parco supermarkets.

Owned by the Chinese-Filipino businessman Lucio Co, Puregold acquired 100 percent of S&R through a P16.5 billion share-swap deal, allowing the family to consolidate all retailing businesses under a single publicly-listed corporation targeting all market segments.

Puregold caters to the lower-income with a market share of 16 percent. On the other hand, S&R, which caters to the middle and upper class consumers, has a market share of 3.3 percent.

With a membership base of over 214,700 across the country, S&R has presence in Bonifacio Global City; Congressional Ave. in Quezon City; Alabang; Aseana Business Park in Baclaran; San Fernando in Pampanga and Mandaue City in Cebu.

S&R and Parco contributed 15.1 percent of the total increase in the group’s net sales.

The group acquired the family Parco supermarket chain in a deal valued at around P760 million mass-oriented. Of Parco’s 19 stores, 12 are located in Manila, three in Bulacan and four in Rizal.