Puregold counting on peak season to hit sales target #PGOLD PUREGOLD Price Club, Inc. said on Tuesday that it is still on track to achieve a 20% sales growth target for the year after it returned to profitability in the third quarter. In the first nine months, growth was at 15%, and it remains confident of making up the difference in the remainder of the year, an official said. “We have recovered (from a sales dip in the first half) and we’re well on our way to double-digit growth. The fourth quarter is our best season…” Puregold Vice-President for Operations Antonio E. Delos Santos told reporters on the sidelines of the first KaIndustriya Convention at the World Trade Center in Pasay City. The retailer reported a 6.6% decline in first-half net profit to P1.656 billion, weighed down by the absence of one-time gains. Net sales in the same period, however, grew 16.8% to P38.549 billion. Mr. Delos Santos confirmed that Puregold’s third-quarter results show a return to profitability, but declined to disclose numbers as the financial statements have yet to be audited. The company earmarked P3 billion in capital expenditure this year as it opened 26 new stores, bringing the total store count to 226. These are composed of 121 hypermarkets, which offer a variety of general merchandise, a full-service supermarket, and wholesale operations; 76 supermarkets that operate as neighborhood stores offering targeted consumer items and a limited variety of general merchandise; and 29 discount stores that offer limited stock consisting of top-selling goods that are intended to be sold quickly at low prices. “Our biggest growth will be in the supermarket segment,” he said. “For 2015, we will continue to be aggressive. We always behave like the challenger.” He noted that Puregold’s competitors are “becoming very aggressive with pricing,” but the company is maintaining its approach of offering affordability, and plans to compete hard in areas like accessibility and shopping convenience. In June, Puregold tied up with Japanese convenience store group Lawson, Inc. to build and operate a chain of such stores in the Philippines. The partners will open 20-30 stores this year, which will eventually accelerate to 80-100 stores annually in the succeeding years, with a 500-store target by 2020. Puregold contributed 70% to the joint venture, with Lawson taking up the remainder. bworldonline/content.php?section=Corporate&title=puregold-counting-on-peak-season-to-hit-sales-target&id=96082 10/14/2014
Posted on: Wed, 15 Oct 2014 03:58:57 +0000
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