Puregold sees double-digit sales growth in ’15

MANILA, Philippines–Supermarket chain Puregold Price Club Inc. targets to sustain double-digit sales growth for the sixth straight year this year by adding new stores and expanding its customer base through loyalty programs.

Puregold Price Club vice president for operations Antonio E. de los Santos told reporters Thursday that the company was expecting “at least a 10-percent sales growth” this year.

“We’re confident (to grow sales) because shopper response has been huge, especially from the ‘D’ and ‘E’ socioeconomic classes or low-income families,” he said.

Puregold Price Club’s latest financial performance report showed that its consolidated net sales rose by 16.1 percent to P59.8 billion in the first nine months of 2014 from P51.5 billion in the same period in 2013.

On its website, the company said Puregold stores—Price Club hypermarkets, Junior supermarkets and Extra discounters—accounted for more than four-fifths of consolidated net sales. The remainder is contributed by S&R Membership Shopping.

The company will spend P3 billion to expand its store network to 250 by the end of the year from 233 to date, Delos Santos said.

Up to three stores will be opened within the first quarter, including one in Imus, Cavite, before the end of this month, he said.

Within the first half of the year, two to three “neighborhood stores” in subdivisions will also be launched as Puregold plans to expand its reach in the “C” market or the middle class, Delos Santos said.

“Our niche is the ‘D’ and ‘E’ segments, but we’re trying to move the needle to the ‘C’ segment.”

Aside from new stores, the company also targets to convert 50 sari-sari stores operated by members of its so-called “Aling Puring” program into mini-marts this year. To date, 15 “Aling Puring” stores had already been converted into mini-marts.

Puregold has also ventured into selling medicines through its Pure Pharmacy outlets in 12 of its stores, he added.

The loyalty program dubbed “Puregold Perks,” launched last November, is also helping increase the number of end-users or individual customers from the “C” market, according to Delos Santos. “We expect more membership in ‘Perks’ because we have more end-users than sari-sari store customers,” he noted.

To date, there are 300,000 members with “Perks” cards, with membership expected to hit 500,000 in three months, Delos Santos said.

“Hopefully, we’ll get to a million members. If we’ll be able to achieve that before this year ends, then we’ll raise the bar.”

The “Perks” card can be purchased for P100 for a two-year membership, and it may also be obtained for free via various promos being offered by Puregold as well as its suppliers.