Ayala, Puregold to set up new supermarket chain

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Ayala Land president and CEO Antonino Aquino. file photo

MANILA, Philippines—Ayala Land Inc. has entered into a joint venture with Puregold Price Club Inc. to develop and operate a new brand of mid-market supermarket chain that will complement Ayala’s new integrated and mixed-use developments.

 

ALI, through subsidiary Varejo Corp., signed a 50-50 percent joint venture with Puregold’s newly created unit, Entenso Equities Inc., for this undertaking on Monday night.

 

“The joint venture further expands our previous tie-ups with the Puregold group in Harbor Point in Subic and Fairview Terraces in Quezon City,” ALI president Antonio Aquino told the Philippine Stock Exchange on Monday in a formal disclosure notice.

 

“This new supermarket product will further enhance our retail offerings which have been recently expanded to include our other department store and convenience store JVs (joint ventures),” Aquino said.

 

The new venture is a 50-50 percent split between the Ayala and Puregold groups, Puregold president Leonardo Dayao said in a separate interview. The venture plans to open the first store under the new brand by the first half of next year.

 

In its disclosure, Puregold said the new brand of supermarkets would cater to the ABC consumer segments.

 

For its part, ALI said this was part of the growth strategy for its retailing business and was in line with the objective of establishing integrated, mixed-use communities across the country.

 

Puregold, on the other hand, recently set up Estenso to hold investments in other food retailing businesses that won’t necessarily be consolidated into Puregold. While Puregold’s earlier acquisitions were mostly existing businesses and brands that were consolidated into Puregold – such as S&R, Parco, Eunilane and 11GrocerE – this move suggested that forging alliances in lieu of outright buyouts may become a key strategy to gain and protect market share by preventing competition from getting a foothold in vital areas.

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  • thomas_xmoore

    Why not, build factories that can develop, produce and support products that which can be exported to the international market. Mas maraming magagawang trabaho ang ganito. We need to start thinking of producing our own than smuggling products and selling them with a hefty price tags…

  • go88

    Another chain selling overpriced low quality products … shopping in our supermarkets is more expensive than in Europe with worse quality.

  • tomtom55

    saan itatayo? baka sa gilid ng EDSA na naman. dagdag trapik na naman. puro kayo pahirap sa mamamayan.

  • Jun Go

    o baka naman ipasa nanaman sa mga consumers ang mga abubut expenses ng kumpanya kagaya sa MWSS, Maynilad.

  • mike

    another supermarket chain..how many of this kind the Phils need???? how many of this before the Govt and people realize that it will only bring harm that good to the economy because it is killing the small business (e.g flee market, talipapa and sari-sari stores)..Can the Ayala’s, Sy’s, Gokongwie’s and Gov’t focus on creating industries that will produce goods that can be exported and can complete with international market…

    • go88

      You can’t bribe or cheat the international market … if the products s.cks nobody will buy. The local oligarchs made their money with help of government connections, bribing the court … this won’t work abroad and they know it. It’s much safer for them to harvest money from the OFW establish monopolies while preventing foreign players entering our markets.

      • mike

        woww..if i will follow your line of thinking based on your comment it would only mean that we filipino is not qualified to design/produce high quality goods or invent technologies that can compete in international market..awwww that’s suckkkkkkkk…

      • go88

        There are filipinos who designed quality goods and invented technologies that can compete in the international market, dado banatao made it big in Silicon Valley and there are others. But those filipinos had to leave the country in order to succeed because there is no support for inventors in this country.

        What I want to say is that those vampires in charge of the PI economy are not interest in investing in industry, they made their money not because of brilliant ideas but by stealing, illegal pratices and got away with their crimes through bribing and government connections. The usual way to get (very) rich in this country is to be corrupt.

  • darsmith

    JV with Ayala? For sure, price of goods will shoot up (as opposed to Puregold’s reasonably-priced grocery items) due to Ayala’s top-heavy overhead costs. Think about the astronomical salaries of Ayala managers which unfortunately didn’t prevent the Glorietta and Serendra explosions.

  • Pilipinas Blogger

    PAALALA: Wag lagyan ng centralized gas system ang mga supermarket at ayusin ang mga septic tank.

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