RETAIL giant Puregold Price Club Inc. plans to open a bigger outlet in Davao City that will serve as its flagship store in that region to support its expansion in the area, a top company official said.
“We’re spreading out the store openings because there are plenty of opportunities,” Puregold President Ferdinand Vincent Co said at Puregold’s third annual “KAINdustriya” food business convention held at the World Trade Center in Pasay City earlier this week.
Co said that Puregold is on the lookout for a location for a bigger store in Davao City to address the retailer’s logistical needs.
Having an “anchor” or “flagship” store in the city will help it avoid delays during typhoons and support the expansion of Puregold’s reach to smaller stores in Mindanao, he added.
Davao City is the country’s third most populous metropolitan area after Metro Manila and Metro Cebu, with a population of 2.5 million in 2015. With a total land area of 2,444 square kilometers, it is the country’s biggest city in terms of land area.
“Our target is to open 25 stores this year and so far we already have 14 stores opened. This week we’re opening two stores in Tacloban, we’re also opening another store in Baguio, we’re opening a store in Manaoag,
Pangasinan,” said Antonio delos Santos, Puregold vice president for operations.
At present, Delos Santos said “the company has 266 stores nationwide. Then we have nine NE stores and eight Budgetlane stores which we acquired this year. That’s about 283 stores.”
Puregold currently has eight stores in Mindanao: three in Davao and one each in Digos, Bukidnon, Cagayan de Oro, Butuan and Cotabato.
“Target sales for this year is P90 billion and we’re on track. So far we’re about 45 percent of the target,” he said, noting that sales are usually higher in the second half of the year toward the Christmas season.
Puregold reported a consolidated net income of P2.27 billion in the first half of 2016, an increase of 13 percent from the P2 billion posted in the same period in 2015. Consolidated net margin in the first quarter of 2016 was at 4.4 percent.
In December of last year, Puregold said it was allocating P1 billion for capital expenditures (capex) for the construction of additional Puregold stores, P1 billion for two S&R Membership Shopping stores, P450 million for 75 Lawson convenience stores, and P150 million for additional branches of S&R New York Style quick service restaurants.