Puregold Price Club Inc. and the Ayala group intends to open 10 mall-based supermarkets dubbed “AyaGold” within three years, with the first one expected to launch in the next few months.
John Marson T. Hao, Puregold vice president for investor relations, said in an interview that the AyaGold concept will bring his group into direct competition with companies that are operating on the prevailing business model.
“Puregold stores have always been standalone, and we are the only one in the market catering specifically to the low-end segment—including sari-sari store operators,” Hao said.
He said that based on the 50-50 joint-venture deal with the Ayala group, the two partners will be putting up the planned AyaGold chain in Ayala Land’s new projects.
“We will open the first store at the UP Town Center plus a second one within the year,” Hao said.
“We have not identified all of the locations but these will be Ayala malls and projects where there’s no supermarket yet,” he added.
As for it own initiatives, Puregold has earmarked P2.5 billion to spend on 25 new stores planned for launch this year.
Hao said that of the 25 new locations, 10 or 12 shall be in the Visayas and Mindanao.
“As of the first quarter, we have opened four new stores, all of them outside Metro Manila,” he said, adding that this year’s expansion plan will add to Puregold’s 233 existing stores.
Puregold is kicking off Wednesday its 12th annual Sari-Sari Store Convention, which is being held at the World Trade Center in Pasay City.
Hao said that the membership of Puregold’s Tindahan ni Aling Puring loyalty program for resellers has since the end of 2014 risen by 50,000 to 350,000 today.
He said resellers who are mainly sari-sari store owners account for about 35 percent of Puregold’s total revenues.
Earlier this month, Puregold’s parent firm, Cosco Capital Inc., reported a 17-percent surge in consolidated net income for the first quarter, which reached P1.49 billion.
Cosco said in a statement that its retail business segment from Puregold and S&R contributed 81 percent of the total revenues.
“Our operating business units will sustain its growth in 2015 and we will continue to embark on more expansions and acquisitions across all businesses to cater to the growing demands of consumers.” Puregold president Leonardo Dayao said.