Puregold spending P8.1 billion to bankroll expansion

MANILA, Philippines — Puregold Price Club Inc., the flagship retail chain of businessman Lucio Co, is investing P8.1 billion this year to support its store network expansion.

Of the amount, Puregold has set aside P3.8 billion for the development of four S&R Membership Shopping Warehouses and six S&R quick service restaurants (QSR) this year.

A total of P2.4 billion has also been allotted by the company for 30 new Puregold stores.

The retail chain has likewise earmarked P1.4 billion for maintenance capital expenditures, solar projects and IT upgrades.

Another P500 million will be used by the company for logistics capex.

For this year, Puregold is looking at organic store expansion in more provincial areas, primarily in second to fourth class municipalities.

It is also looking into the development and expansion of “small box” dense community centric model that ranges from 300 square meters to 500 sqm.

The group ended the first quarter with a total of 575 stores composed of 495 Puregold stores, 26 S&R Membership Shopping Warehouses and 54 S&R QSRs.

The company is optimistic on sustained revenue growth this year, eyeing a five to eight percent growth.

Target gross profit margin for Puregold stores is from 15.5 to 16.5 percent, and from 21.5 to 22.5 percent for S&R.

Puregold saw its consolidated net income rise to P2.5 billion in the first quarter from last year’s P2.4 billion.

The improvement was driven by a 6.7-percent increase in revenues to P47.3 billion from P44.4 billion in the same period in 2023.