Puregold sets 2016 capex at P2.6B

Local retailing giant Puregold Price Club Inc. is allocating P2.6 billion for its capital spending in 2016, to fuel an aggressive network expansion plan across different brands and platforms.

This will enable the Lucio Co-led company to further strengthen its foothold in the market through its Puregold, S&R and Lawson stores.

John Marson T. Hao, vice president for investor relations of Puregold, said that of the capital outlay set for next year, about P1 billion was earmarked for Puregold, specifically for the construction of 25 new stores across the country, while another P1 billion would be used to put up two S&R branches next year.

The company, Hao said, would also spend P450 million to put up 75 Lawson stores in Metro Manila and another P150 million for the construction of 10 S&R QSR stores next year.

Hao said the 2016 capex was lower than this year’s spending of P3.4 billion, as this had included the P1.5 billion used for acquisitions, the latest of which was the eight-store supermarket chain BudgetLane.

By the end of 2015, the firm expects to have 274 Puregold stores, 15 Lawson stores, 10 S&R branches, and about 15 S&R QSR stores.

Given the company’s aggressive retail network expansion plan, Puregold Price Club is looking to grow its profits by double digit next year, or hopefully at the same pace as the forecasted 12 percent growth this year, Puregold VP for operations Antonio E. delos Santos told reporters Friday.