MANILA, Philippines — Retail giant Puregold Price Club Inc. has decided to abandon the convenience store business to focus its resources on its popular grocery brand.
In a statement yesterday, Puregold said it has accepted the offer of its joint venture partner, Lawson Japan, to buy its entire shareholdings in their Philippine joint venture called PG Lawson Inc.
Puregold holds 70 percent equity interest in the joint venture, representing 4.9 million shares.
Puregold did not disclose the amount of the transaction.
“The divestment decision will enable Puregold to rebalance its risks portfolio in the grocery retail sector and focus its resources in the further development and strengthening of the Puregold brand,” the Lucio Co-controlled company said.
Puregold partnered with Lawson in 2014 to bring the convenience store brand in the country to compete with the likes of 7-Eleven, Mini Stop and FamilyMart.
Lawson is one of the biggest convenience store chains in Japan.
In the Philippines, Lawson was earlier targeting to roll out 500 convenience stores across the country by 2020.
Puregold posted a consolidated net income of P5.84 billion in 2017, up 5.7 percent year-on-year.
As of end-2017, the Puregold group had a total of 372 stores nationwide, including 309 Puregold stores, 14 S&R Membership shopping warehouse, 32 S&R New York Style QSR, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.