Puregold Price Club Essay Example

ultimate customer-oriented hypermart, offering one-stop shopping convenience and delivering unbeatable value. Our unwavering pursuit is victory.

Our mission is to provide products, services, and business opportunities to every Filipino family.

We aim to create enduring relationships with our suppliers and business partners, while also giving priority to the personal and professional growth of our employees. Additionally, we are dedicated to producing profitable results for our stockholders.

Every day, PUREGOLD is with you!

Values

The passage emphasizes the values and principles of being a member of the PUREGOLD family. This includes satisfying customers' needs with top-notch products and services, as well as adapting to environmental changes and being dedicated in our work. Furthermore, it underscores the significance of upholding honor, credibility, honesty, dignity, and loyalty through our actions.

The company's main products and services and the markets they serve are as follows:

The Company operates using various retail formats and store brands. Each format and brand is strategically positioned to appeal to different price points and demographics.

• The main operating format of Puregold Price Club is through hypermarkets, which offer a range of 30,000 to 50,000 SKUs and accounted for 79.8% of the total revenue as of June 30, 2012. Currently, there are 66 hypermarket stores located mostly in major commercial centers and near transportation hubs. Puregold Price Club serves both retail customers and resellers, including members of the Company's pioneering TNAP loyalty/membership program, providing a wide range of food and non-food products.

The "Puregold Junior" supermarket chain has been in operation since June 2010 as a subsidiary of The Company. These supermarkets, located mainly in

residential areas, focus more on food products rather than non-food items compared to the Company's hypermarkets. Retail consumers make up their primary customer base instead of resellers. As of June 30, 2012, there are 32 supermarkets operated by the Company, contributing approximately 13.9% to the total revenue.

The Company operates a discount store format called 'Puregold Extra' which specializes in providing a limited range of popular products at reduced prices compared to Puregold Price Club or Puregold Junior. As of June 30, 2012, there were 11 discount stores, accounting for 2.5% of the total revenue. In addition, the Company owns a membership shopping chain known as 'S;R', which has been managed by wholly owned subsidiary KMC since June 2012. S&R offers customers premium quality international and local brands for both personal and business needs.

S&R is well-known for selling imported international brands, which make up a significant portion of their overall sales. They offer a wide range of products, including fresh food, personal care items, household products, and electrical appliances. Additionally, S&R provides specialized services like deli, food service, and automotive services. Their target customers in the Philippines are individuals from the middle to upper-class who belong to the A and B class. KMC operates six membership shopping chains and in June 2012 their net sales accounted for 2.7% of the Group's total revenue in the first half of that year.

Methods for distributing Products/Services.

The Company restocks its inventory either through direct store deliveries by using its suppliers' distribution networks or through cross-docking, which involves transferring cargo between transport vehicles without warehousing. By using this method, the Company avoids the

need for its own expensive distribution network for deliveries. For deliveries from smaller suppliers that have limited distribution capabilities, the Company collaborates with Aces Logistics, Inc. to provide cross-docking services. Additionally, the Company efficiently supplies its smaller store formats from Hypermarkets. This allows suppliers to benefit from a cost-effective supply chain by outsourcing part of their delivery obligations to the Company. As a result, Puregold also increases its back-end profit by improving delivery efficiency.

The Company's stores accommodate customers who live nearby and those who use personal or public transportation for shopping purposes. The Company guarantees that its stores have convenient parking facilities for customers traveling by car and strategically places them near major transportation hubs. Moreover, the Company offers delivery services to resellers who cannot visit the stores. Currently, Puregold caters to approximately 2 million households and over 200,000 resellers, focusing on the D and E market segments.

The Philippines experienced consistent economic growth from 2005 to 2010, with a compound annual growth rate (CAGR) of 13.8%. The EIU predicts that between 2010 and 2012, the country's nominal GDP will rise from US$188.7 billion to US$251.3 billion at a CAGR of 15.4%. During this period, the real GDP is also expected to increase from US$125.0 billion to US$139.5 billion, representing a CAGR of 5.6%. This growth can be attributed to factors such as increased job creation and employment rates, higher overseas remittances, and a revival in export activities.

It is worth noting that there is a positive correlation between consumer spending and economic growth in the Philippines. According to Planet Retail, consumer spending in the country grew from US$68.4 billion to

US$138.8 billion between 2005 and 2010, with a CAGR of 15.2%.

Over the past decade, the retail industry in the Philippines has experienced substantial growth. This growth can be attributed to consistent economic and population growth, higher disposable incomes, and increasing urbanization. According to Planet Retail, between 2005 and 2010, retail sales in the country increased from US$48.4 billion to US$95.3 billion with a compound annual growth rate (CAGR) of 14.5%. Additionally, grocery retail sales also saw significant growth during this period, rising from US$33.5 billion to US$64.2 billion with a CAGR of 13.9%. The global economic recovery and rapid development of the Philippine economy have further fueled growth in the retail sector. As a result, major retailers in the country have resumed their expansion plans after a period of economic slowdown.

Planet Retail predicts that the retail industry in the Philippines will generate sales of US$117.4 billion and modern food retail of US$25.0 billion (MGD Total) by 2012, driven by a compound annual growth rate (CAGR) of 11.0% and 11.3% from 2010 to 2012. The Company faces competition from various traditional and modern retailers who prioritize convenience, presentation, price, loyalty programs, wide product range catering to all income levels, and quality customer service. Key players in the market include SM Investments,Puregold Price Club,Rustan's Robinsons Benison Group of Companies,and Uniwide with dominant formats being hypermarkets, superstores,s supermarkets,n neighborhood stores,c cash & carry outlets,and wholesale clubs.Customers' preferences are influenced by factors such as product selection.quality.service.price,and location when choosing between these competitors.