PUREGOLDS STRATEGY

A review of one of the Nations ingenious business tactics.

Being one of the countrys biggest supermarket chains, Puregold certainly knows how to
take advantage of the market. As what Ive read in The PHILIPPINE STAR business
section, B-12, dated May 10 2012, the company is using the common sari-sari store as a
leverage. 800,000 is the estimated number of sari-sari stores present in the country,
creating the lions share in the countrys retail industry. As I see it, this is one of the
best strategy there is, creating an alliance with the small players instead of trying to
eliminate them. Here in Legazpi City, small sari-sari store owners are fuming by the
entry of the LCC & JY chains of convenient stores. They see it as a grave threat to their
financial existence, as this convenient stores offer a wide array of cheaper products.
Local consumers would rather purchase their groceries and supplies in these convenient
stores instead of the sari-sari ones. This kind of business strategy is financially worth
doing but morally unstable as this creates bad impressions from most small-medium
retail entrepreneurs. Its a double edged sword; it signifies a growth in the local
economy but creates tension in the local retail society.
Going back to the topic at hand, Puregolds strategy of aligning itself with the sari-sari
store owners, establishes a strong financial certainty. It already has a program called
Aling Puring, with this, sari-sari store owners have access to Puregolds huge product
inventory-most probably at a discount. Now, with this, small entrepreneurs would source
their goods in Puregold, eliminating in one way or another, Puregolds competition.
Although this strategy may apply to most areas and in some others it may not (of
course due to the geographical location), it still creates a great leverage as a whole.
This strategy creates the, as I call it, Spring of Wealth where revenue keeps flowing,
just like water on a spring. I have to hand it to them; their marketing department sure
knows how to do their work!
https://jakenasolloria.wordpress.com/2012/05/21/puregolds-strategy/
Puregold Price Club Inc (PGOLD) Details

Puregold Price Club, Inc. engages in the retail and wholesale of consumer goods in the Philippines. It
operates hypermarkets under the Puregold Price Club name primarily in commercial centers and near
transportation hubs; supermarkets under the Puregold Junior located primarily in residential areas; and
discounted stores under the Puregold Extra name, as well as stores under the warehouse club concept.
The company also operates supermarkets under the Eunilaine Foodmart and Grocer E Supermart
names, as well as San Roque Supermarkets name. It offers canned goods, housewares, toiletries, dry
goods, food products, etc. The company sells its products to retail consumers; and resellers and small to
medium sized stores, as well as canteens, restaurants, bakeries, convenience and drug stores, and
others. It operates a network of 248 stores. Puregold Price Club, Inc. was founded in 1998 and is
headquartered in Manila, the Philippines. Puregold Price Club, Inc. is a subsidiary of Cosco Capital, Inc.

Company Description

Contact Info

No. 900 Romualdez Street

Paco
Manila, 1007
Philippines
Phone: 63 2 522 8801
Fax: 63 2 523 3055
www.puregold.com.ph

Puregold Price Club, Inc. engages in the retail and wholesale of consumer goods in the
Philippines. It operates hypermarkets under the Puregold Price Club name primarily in
commercial centers and near transportation hubs; supermarkets under the Puregold Junior
located primarily in residential areas; and discounted stores under the Puregold Extra
name, as well as stores under the warehouse club concept. The company also operates
supermarkets under the Eunilaine Foodmart and Grocer E Supermart names, as well as
San Roque Supermarkets name. It offers canned goods, housewares, toiletries, dry goods,
food products, etc. The company sells its products to retail consumers; and resellers and
small to medium sized stores, as well as canteens, restaurants, bakeries, convenience and
drug stores, and others. It operates a network of 248 stores. Puregold Price Club, Inc. was
founded in 1998 and is headquartered in Manila, the Philippines. Puregold Price Club, Inc.
is a subsidiary of Cosco Capital, Inc.

Puregold Price Club, Inc. (PSE: PGOLD) is a chain of supermarkets in the Philippines established
in 1998.
It began in 1998 when Puregold opened its first branch in Mandaluyong City. Presently, it has grown
into a retail chain with more than 200 stores nationwide.[3]
In 2011, Puregold Price Club went public and inaugurated as listing on the Philippine Stock
Exchange.

In 2012, Puregold acquired Kareila Management Corp., which owns S&R Membership Shopping and
Parco. Over 19 operating outlets were purchased and converted to Puregold. [4][5] The shareholders of
the retail chain Puregold have approved the merger of the other two operating units into the parent
company, consolidating Puregold's supermarket businesses under the publicly listed supermarket
operator.[6]
In February 2013, global investment firm Capital Group Companies (CGC) bought 5.4% total
outstanding stock of Puregold.
In May 2014, Puregold formed a joint venture with Japanese convenience store chain Lawson under
the name PG Lawson Inc. Puregold owns 70% of the venture and they opened their first branch in
Sta. Ana, Manila on March 30, 2015. [7] nhttps://en.wikipedia.org/wiki/Puregold

SEC approves
public offering

Puregolds

P12.4-b

by Jenniffer B. Austria

The Securities and Exchange Commission en banc approved Friday the P12.4-billion
initial public offering of Puregold Price Club Inc., the supermarket chain owned by
Filipino-Chinese businessman Lucio Co.
Based on the approved timetable, Puregold said it would set the final price of the shares
on Sept. 21 and start offering them from Sept. 23 to 29. It plans to list the shares on
Oct. 5.
The company will offer up to 600 million in primary and secondary shares and another
90 million common shares to cover overallotment.
The public offering could generate as much as P12.4 billion in proceeds based on an
assumed maximum price of P18 per share.

Puregold said it was spending P6.26 billion from 2011 to 2013 primarily to put up new
stores in Davao, Rizal, Cavite, Bataan, Pangasinan, Baguio City, Ilocos Norte,
Caloocan, Bulacan, Camarines Sur, Laguna, Quezon City, Legaspi City, Iloilo City,
Leyte, Cebu City, Tarlac City, La Union and Albay.

Puregold said it would use proceeds from the IPO to settle

debt and finance store expansion.
The company plans to settle P2.24 billion worth of debt
with China Banking Corp., Metropolitan Bank & Trust
Co. and Banco de Oro Unibank.
The supermarket chain hired HSBC and UBS AG as joint
global coordinators and international lead managers
and BDO Capital and Investments Corp. and First Metro
Investments Corp. as domestic lead underwriters.
Net sales reached P17.3 billion in the first six months of
2011, up 41 percent from P12.3 billion year-on-year while
net income grew 270 percent to P782 million from P212.2
million.

Puregold will offer 500 million in primary shares and 100

million in secondary shares owned by existing
shareholders, including Lucio Co and Susan Co.
The company plans to sell up to 420 million common
shares to international investors and 180 million to local
investors.
Puregold is the second-largest retailer among the
hypermarkets, supermarkets and cash and carries in the
Philippines based on gross sales in 2010.
The company has grown significantly since it commenced
operations, expanding its business from one store in 1998
to 72 in 20 cities and 22 municipalities throughout Metro
Manila as of end-July 2011.

The company focuses on two customer segments, which

are retail customers and resellers. It offers three retail
formats and store brands, namely hypermarkets,
supermarkets and discounters.

Approximately 65 percent of its customers are C and D

markets with a monthly income of P8,000 to P50,000.
Source: http://www.manilastandardtoday.com

In my opinion we should do our due diligence before

jumping into this IPO. The expansion of Puregold has
greatly help its bottomline and also since part of the
proceeds of the IPO is to be use to settle obligations the
remaining payment will be use to put up more stores
specially in the far flung provinces in Northern Luzon and
probably
Mindanao.
It is a new opportunity but again one should carefully study
Puregolds long term profitability. I am searching for
available financial statement of the company to do
fundamental analysis but so far havent found one. If you
know where to find one please leave link in the comments
below.
Puregold sets aggressive expansion plan for 2011

By Zinnia B. Dela Pea (The Philippine Star) Updated December 27, 2010 12:00 AM

MANILA, Philippines - Puregold Price Club Inc., one of the countrys fastest-growing
hypermarket and supermarket chains owned by Filipino-Chinese businessman Lucio Co, is
embarking on an aggressive expansion program next year to build 35 new stores.

In a filing with the Securities and Exchange Commission (SEC), Puregold said it is slated to open
15 branches within the first half of 2011. The company has grown significantly since it
commenced operations from one store in 1998 to 51 stores in 30 cities as of Sept. 30, 2010
throughout Metro Manila and Luzon.

The existing branch network consists of 38 hypermarkets with an aggregate net selling space of
179,060 square meters, 12 supermarkets under Puregold Junior brand, and one mini-mart
called Puregold Extra.

Leveraging on the success of its retail and wholesale model, Puregold intends to establish
presence in the largely underserved Visayas and Mindanao markets beginning 2012. Store
openings are planned in Iloilo, Negros Occidental, Leyte and Cebu as well as in Cagayan de Oro,
Davao City and General Santos City.

In selecting sites for opening its stores, Puregold aims to be the first store in markets that it
believes have a high customer potential.

As part of its expansion plan, the company has entered into a total of 20 leasing agreements for

its new stores to be opened in 2011 in various parts of the Philippines. These new stores are
expected to provide 73,058 square meters of additional net selling space.

Funding for its expansion will come from a planned initial public offering (IPO) estimated to
raise up to P11.2 billion.

The company plans to offer as much as 700 million common shares (including a greenshoe
option) through a primary and secondary offering at a maximum price of P16 apiece.

The offer, which will account for 36 percent of the firms outstanding stock after the IPO,
consists of up to 500 million primary shares and 100 million existing shares to be issued by the
selling shareholders. The company is allotting 100 secondary shares for the overallotment
option in case of strong demand.

The company said it has an option to sell 100 million more shares depending on market
demand.
The Hongkong and Shanghai Banking Corp. Ltd. is the international lead manager while BDO
Capital & Investment Corp is the domestic lead manager for the share issue.

The shares will be priced by March 2 while the offering for small investors and the domestic
market will run from March 8 to 15. Listing of the shares is targeted by March 21
http://laosamuel.blogspot.com/2010/12/puregold-sets-aggressive-expansion-plan.html
.
Tindahan ni Aling Puring (TNAP) Puregolds Loyalty and Membership Program for Resellers

TNAP is a customized program made especially for Puregolds primary customers which include sari-sari
store owners, karinderyas, canteens, catering, bulk buyers, wholesalers and other resellers.

TNAP is an avenue of Puregold to fulfill its mission to provide products, services and business opportunities
to every Filipino family.
It is a means to cultivate a strong sense of loyalty and belongingness among Puregold customers.
TNAP is a helpful and innovative way to augment family income.
It provides free trainings, seminars; and annual Sari-Sari Store Convention, to further enrich entrepreneurial
knowledge and spirit.
It bridges start-up businesses and resellers to micro-financing institutions.

Fulfilling a promise of partnership. Covering more areas through the sari-sari stores and resellers.
Enhancing the business, cultivating loyalty and trust.
Winning Customers.
Winning Jobs.
Winning Stakeholders.
Winning People.

Values of Puregold

Sense of Belonging
- Feeling that one has an essential role to play as part of the PUREGOLD family

Customer Service
- Providing products and services that meet the demands and expectations of customers

Dynamism
- Open, adaptive and responsive to the changing environment

Commitment
- Dedicated and conscientious focus on work

Integrity and Loyalty

- Honor, credibility, honesty, dignity, "palabra de honor", "walking the talk"

Vision & Mission

To be the Most Customer-Oriented Hypermart offering a One-Stop Shopping convenience
and Best Value to our Customers.
Sa PUREGOLD, Always Panalo!

Our Mission is to Provide Products, Services and Business Opportunities to Every Filipino Family.
We Establish Lasting Relationship with Our Suppliers and Business Partners.
We Strive to Promote the Personal and Professional Development of our Employees.
We Commit Profitable Results to the Stockholders.

Sa bawat araw, PUREGOLD kasama mo!

Loyalty Corner
Card Number :

Last Name

Check Credits

Instructions:

Please input your

card number
with no spaces.

Input your last name.

For example, if you are John
Reyes,
please input REYES.

You can now

view your poin

For surnames with , it will be

reverted to a normal n character.

Service PolicyCustomer Service Service Policy

1. Providing above par customer service.
2. Service with a Smile.
3. Helping the Small Entrepreneurs.
"Because of its low-priced merchandise, good assortment, and wholesale program, Puregold becomes a
destination for resellers where they can purchase what they need at the right quantity, price and time."

"Mababa ang presyo, minsan may mataas pero konting diprensya lang. Pero kapag sa Puregold ako namili, may
points ako. Dami ko na ngang nakuhang appliances, libre lahat yun."

Puregold knows which side its bread is buttered

Read more: http://business.inquirer.net/125993/puregold-knowswhich-side-its-bread-is-buttered#ixzz3fNHjfUAS
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
For thousands of sari-sari store owners, the last weeks of May are red letter days on
the calendar.
Thats because around this time, they get to attend a national convention designed
specifically for them, during which they get to purchase products at a steep discount,
listen to entrepreneurship talks by known experts, and go home with freebies from the
different manufacturers who take part in the unique gathering.
Behind the annual convention is listed Puregold Price Club Inc., an operator of
wholesale and retail stores, including supermarkets and groceries, which is posing a
serious challenge to veteran retail operators in the lucrative category.
Puregold is championing the cause of the sari-sari store owners through its Tindahan
ni Aling Puring membership program. It is well aware that these small entrepreneurs
who dot the countrys retail landscape comprise the bulk of its customer base.
Puregold knows which side its bread is buttered, and it feels that these sari-sari store
owners have not been given the recognition and support they are entitled to.
Puregolds attention to sari-sari store owners has paid off handsomely for the
company, says Puregold merchandising director Ferdinand Vincent Co. It allowed the
company to generate loyalty in the market and become top of mind when it comes to
filling up the shelves of sari-sari stores.
Co tells SundayBiz that Puregold sources valuable insight from the Tindahan ni Aling
Puring members. They point Puregold to new product categories and brands that are
selling well on the ground, he says.
In return, Puregold has laid out a multipronged support program for the small
entrepreneurs, including those running small eateries or catering enterprises.
Tindahan ni Aling Puring members, for example, may get access to negosyo sessions,
during which they are taught to manage their finances, how to display their products
for maximum customer impact, and advice on what products to purchase to make the
most of their capital.

FERDINAND Vincent Co
Also, they earn points from every purchase at any Puregold Price Club or Puregold
Extra store. Members earn three points on their Aling Puring card for every P100 cash
or P200 charge purchase of participating products member, and one point for every
P1,000 cash or P2,000 charge of nonparticipating products or those that are not
covered by special promotions. These points can be used to purchase goods.
Puregold also has programs for those who are still thinking about putting up their own
sari-sari store. It has a Sari-Sari Store 101 session where budding entrepreneurs get to
see how far an initial capital of P10,000 can get them. In some Puregold stores, there
is a mockup sari-sari store to see the startup inventory of best-selling products such as
shampoo and conditioner, soap, noodles, coffee, chips and detergent.
We also encourage them to be load retailers for them to earn more. We also help in
inventory because some of them stock their sari-sari store as if they were stocking up
their own pantry. What they buy for themselves are not always what the customers
want, explains Co.
We encourage them to buy the fast-selling products and those that we believe will
sell well. We encourage them to get the shampoos in sachets and not the whole carton
because those are what the consumers want, he adds. We also teach them how to
sell the product, like maybe not compete on price but maybe in assortment. We also
help them properly display their goods.
The Aling Puring program has certainly improved from where it started 10 years ago.
Back then, learning sessions were very informal and conducted within the stores. Only
about 100 sari-sari store owners attended. Then eight years ago, the first convention
was held. In the last meeting, over 50,000 members participated.
The Tindahan ni Aling Puring program is open to all who have their own business. No
membership fee is required, but entrepreneurs must fill up application forms and

submit copies of business or barangay permits. Over 93 percent of the Aling Puring
members are sari-sari store owners and the rest are wholesalers or bulk buyers.
Co says building its corporate strategy around the sari-sari stores, which account for
as much as 40 percent of Puregolds annual sales, has helped its bottom line, making it
one of the most watched companies on the Philippine Stock Exchange.
As of the end of the first quarter, Puregolds consolidated net profit, which includes
sales from over 159 Puregold and Parco stores, six upscale S&R warehouse
membership shopping club outlets and 15 Company E-stores, more than doubled to
P962 million from the comparative figure the previous year.
The sari-sari store owners definitely had something to do with the growth. Thus,
Puregold has every intention of giving the sari-sari store owners more reasons to stay
loyal to the growing company. And manufacturers are willing to help.

SARI-SARI store owners, wholesalers participate in learning sessions.

Co explains that because of the large membership and the volume bought by the
roughly 230,000 Aling Puring members, manufacturers and product suppliers have
supported the members in terms of incentives such as discounts and freebies.
We are not selfish about our knowledge because as they grow, we grow, too, says
Co.
As Puregold vice chair Susan Co said during the Tindahan ni Aling Puring Sari-sari
Store Convention 2013 held from May 22 to 25 at the World Trade Center: We want
our loyal customers, especially our Tindahan ni Aling Puring members, to do good
in their businesses It is our way of giving back to the community. It is our dream
that, when we grow, you grow also.
And there is still a large room for growth as there are an estimated one million sarisari stores all over the country. Puregold believes that it has barely scratched the
surface.
Puregold is so far present in Luzon only, but it will make its presence felt in Mindanao
in July when it opens its first store in Davao. The plan is to put up at least 25 Puregold
stores every year under the three formats.
The Puregold Price Club is the flagship and largest format, which caters to both
commercial and retail clients. Puregold Jr., on the other hand, caters mainly to retail

customers and are more like neighborhood stores. Puregold extra, on the other hand,
complements the Puregold Price Club and functions more like satellite stores for sarisari store owners with the product assortments mainly targeting the wholesaler
market.
Puregold is intent on building on its success, and it believes that it has a strong
foundation in its ever-strengthening relationship with the Aling Puring membership
card carrying sari-sari store owners.

Read more: http://business.inquirer.net/125993/puregold-knows-whichside-its-bread-is-buttered#ixzz3fNHp5Gi2

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Tindahan ni Aling Puring: A fiesta for food entrepreneurs on Oct 1415

- See more at: http://www.jessicarulestheuniverse.com/2014/10/09/tindahan-ni-aling-puring-a-fiesta-for-foodentrepreneurs-on-oct-14-15/#sthash.haRYuQFV.dpuf

Canteen operators, hoteliers, karinderya owners, caterers, amateur and professional cooks are invited to the 1st Tindahan ni
Aling Puring KAINdustriya Convention on October 14 and 15 at the World Trade Center Tent Area in Pasay City. Admission
is free.
Organized by retail giant Puregold, the convention is a national fiesta where food entrepreneurs can shop for food items at
discounted prices, and learn how to improve their earning potential.
These food resellers provide a big boost to the local economy, says Puregold Merchandising Director Vincent Co. They
source their supplies from their communities, and generate jobs in those same communities. They also provide nourishment
to the countrys workforce, from laborers to executives, who do not have the time to prepare their own meals but need good
Filipino home cooking to keep them strong.
The KAINdustriya Convention aims to give small- and medium-scale food entrepreneurs what the annual Puregold Sari-Sari
Store Convention has been providing tindahan owners for the last 11 years. During the two-day event, entrepreneurs may
attend free seminars and learn business tips from experts, including RJ Ledesma and Anton Diaz of Mercato Centrale. They
can attend cooking demonstrations by renowned chefs, check out the trade showcase, and buy food retail products at
discounted prices.

This being a fiesta, celebrities will grace the event.

It will be two days of kita, kain and kabuhayan for our neighborhood chefs, said Co. Through this event, we hope to foster
a sense of community among our food entrepreneurs and inspire them to bring their business to another level.
Puregold will also hold pocket KAINdustriya events at its QI Central, Paranaque, Cainta Junction, Valenzuela, Meycauayan
and Dau branches. For updates on the latest Puregold events and offerings, visit their Facebook page or follow them
on Twitter and Instagram.
- See more at: http://www.jessicarulestheuniverse.com/2014/10/09/tindahan-ni-aling-puring-a-fiesta-for-foodentrepreneurs-on-oct-14-15/#sthash.haRYuQFV.dpuf

Supermarket chain Puregold is staging the 2015 edition of its successful Tindahan ni Aling Puring
A Sari-Sari Store Convention at the World Trade Center in Pasay City.
The chain said the event aims to bring out the entrepreneur in every Filipino by encouraging them to
engage in small-scale businesses like sari-sari stores.
Expected to join the event are 150,000 active members of Puregolds Tindahan ni Aling Puring Club,
composed mainly of small-scale entrepreneurs such as sari-sari store owners, canteen and restaurant
operators and resellers.

Puregold Puhunan Plus

Share

Share

Share

BanKO together with Puregold have partnered to offer an exclusive solution for Aling
Puring micro-entrepreneurs.

Puregold Puhunan Plus is exclusive to Tindahan ni Aling Puring members.

Puregold
Puhunan
Plus

Monthly
Interest
Rate

Monthly
Effective
Interest
Rate

Payment
Maturity

Paymen
t Terms

Credit
Line
Validity

Late
Payment
Penalty

2.5%

2.5%

45 days

45 days

1 year

5% of
principal

Qualifications

21-65 years old

Aling Puring members for at least 6 months
Owner of a business with a permanent business address for at least one year
Internal credit evaluation passer

Application
Submit the following requirements to Puregold Customer Service Counters:

Aling Puring membership card

One valid ID
Globe/TM SIM
Loan application form
Utility bill showing the applicants address in the last 2 months
Business registration in applicants name
Picture ng Business
Sketch Map ng Residence at Business

Benefits

Minimal requirements for approval

Low interest rate: 2.5% interest per month payable in 45 days
Hassle-free payment method: Just cash in at Puregolds Customer Service and
make your payment using your mobile phone
No need to use cash when shopping for goods
No collateral
Works like an easy-to-use debit card
http://www.banko.com.ph/loans/commercial-loans/puregold-puhunan-plus/

Calata to supply Puregold with fresh

meat products
MANILA - Calata Corp will soon supply the meat products requirements of Puregold supermarkets.
In a disclosure to the Philippine Stock Exchange today, Calata said it has completed the acquisition
of the Galicia Group's meat business through a majority stake in Brookfields Meat Inc. The listed
farm feeds distributor said it now owns 51 percent of Brookfields, which will take over the meat
business of the Galicia Group.
Following its acquisition of the Galicia Group's meat business, Calata said it will "aggressively
pursue its meat business by rapidly expanding operations, which shall include the establishment of
major supply agreements with large scale supermarkets, including supply agreements with the
country's largest retail chain Puregold Supermarket, which has more than 200 retail stores all over
the country."
Calata said its acquisition of the Galicia Group's meat business is in line with its "farm-to-plate"
business model.
"Operations from the meat business are expected to substantially contribute to the continued
increase in corporate profitability as the company is geared towards becoming a major player in this
billion of pesos worth of meat business industry for the coming years," Calata said.
Calata first announced its acquisition of the Galicia Group's meat business in December last
year. The Galicia Group supplies the meat products requirements of SM Supermarkets under the SM
Bonus brand. http://www.interaksyon.com/business/89321/calata-to-supply-puregold-with-freshmeat-products

JAN 14, 2012- PUREGOLD PRICE CLUB (AFTER A 50% RISE FROM THE IPO, IS THIS STILL A BUY OR NOT?)
Posted by facelesstrader on January 14, 2012 22 Comments

(As a trader, you dont have to know it all, but you have to know enough to understand and trade better more than
just what the charts are saying, but I suppose pure chartists will disagree with my view. Nevertheless, I wish I had
paid more time to fundamentals, because combining technicals, and selecting the right stocks in the portfolio will
give a real boost in the returns. Belows a sample working of my mind ala Seeking Alpha, not a thoroughly
researched report you see on most foreign brokers reports. I hope I dont get banters, and just give constructive
comments and criticisms please. Im a licensed broker and relatively noob research assistant in the Philippines.
If there are any inquiries related to the markets or anything Ive written here, please write/leave a comment to me:
Facelesstrader@gmail.com)
Personal Disclosures: The Author is long shares in the aforementioned stock (PGOLD). This is not a solicitation to
buy/sell. This is written mainly as a brain-storming/nitpicking way to think about stocks and investments. All views
presented here are of the author alone, and is not related to any company or other entitys views.

BUSINESS PROFILE Puregold

The Company conducts its operations through three retail formats and store brands. Hypermarkets, through
Puregold Price Club, offers a wide variety of general merchandise and a full-service supermarket with wholesale.
Supermarkets, through Puregold Junior, operates as a neighborhood store which offers targeted consumer items
and a limited variety of general merchandise. Lastly, discounters are operated through Puregold Extra, which offers
a limited number of goods, comprising of the Companys top-selling stock-keeping units, that are intended to be sold
quickly at prices lower than Puregold Price Club or Puregold Junior. (Source: Philippine Stock Exchange, Puregold)
*****

Here is a snapshot of the operational results taken from Puregolds September 2011 Quarterly report, that was
released prior to the IPO last October 5, 2011.
PureGold as a Pure Retail Play on Domestic Demand and as a Risk Aversion/Recession-Proof Stock
to Hold for Mid-term Portfolios
-Positively Correlated with Higher Consumer Spending, and Higher Economic Growth
Domestic Supermarkets/Retailers (Consumer Staples), in general continue to be a very reliable stock in any type of
market. Consumer staples obviously lag most market rallies that occur based on strong economic data, as in some
ways, these stocks are considered safe haven, boring and traditional businesses when its in a mature stage.
However, I would disagree to say that PGOLDs in a mature stage. In fact, its in an expansion stage with brighter
potential in the next 4 years, and starting to invest in a company that can ultimately be a cash cow giving dividends in
the future is a compelling argument to hold it.
A mom and pop investor right now in US funds will most likely have WMT shares in their portfolio to weather
recessions, just as how the global market perceives Procter and Gamble, Colgate Palmolive and the likes. Which is
why, when I read a report arguing that since Puregold hasnt given any dividends, and still at its first year of listing
(no trading history), that the stock deserves a discount of 15% with SMPH, I didnt exactly agree with it.
Ill give a check mark on EPS Growth for Pgold. Guidance from the management is to increase from its current 100th
store to another 100 stores by 2015 (or 25 stores/yr starting 2012).
To me, Expansion of Stores = higher revenues and assuming that the managements expenses will grow at the same
rate of the revenues, the earnings in theory should increase just as it has increased the past three years- whopping
more than 100%.

Assuming these numbers are all correct and not front loaded, these numbers are showing that last 3Q2011, PureGold
has grown its net sales revenues by 36.3% y/y from Php19.77 Bil to Php26.95 Bil that has resulted in a 51.5% increase
in their gross profits and operating income. While the topline looks very good, whats more astonishing is that the
expenses were only up by 34.2% (almost similar to the increase in revenues) that have resulted in income before
income tax of Php1.544 Bil, with a bottom line number of Php1,078 Bil after taxes are considered (185% increase in
net income).
While people probably balk at that 4% return on total sales (I sure wouldnt seeing those Php27 Bil sales revenues),
perhaps it would be quite instructive to look at how Walmart (US hypermarket), Carrefour, Target and Costco
(another wholesale supermarket) conducts its financial reports, to grasp the possibility of amazing growth that
Puregold Priceclub still has (despite the 50% increase from its IPO of 12, with the current price of Php18.00) that may
not be priced in.

Puregold Opens Opportunity to Sari-Sari

Store Owners
Sari-sari stores are small neighborhood retail outlets that many small business owners and
entrepreneurs venture in. They provide convenience to consumers with easy procurement of
necessities without the need of transportation. According to Manila Bulletin report:
An estimated 800,000 sari-sari stores hold the lions share of the Philippine retail
market.
Looking around would explain that a number of sari-sari store retail outlet are present. In your
residential places alone, how many sari-sari stores can you see? In my place, within 50 meters away

from home, there are 3 competing sari-sari stores. Why many of them venture into such business
sector?
Sari-sari store is one of the easiest business ventures anyone could engage in. Especially now
that Puregold Price Club, Inc., one of the countrys leading supermarket chains, which provide
convention to these sari-sari store owners to guide them manage well and help them develop their
sari-sari store business. Manila Bulletins report said:
Puregold Price Club Inc., one of the countrys leading supermarket chains, is committed
to support the sari-sari store sector as it once again gathers sari-sari store owners
during the 7thTindahan ni Aling Puring Convention from May 16 to 19 to give them
numerous benefits and opportunities, and help them succeed in their businesses.
This is an amazing break to sari-sari store owners around Philippines, especially those owners and
entrepreneurs aggressive in growing their own businesses. And the good thing is, to reach out and
assist various and more sari-sari store owners, Puregold Companys convention is held in two
venues for convenience and accessibility: the World Trade Center in Manila, from May 16 to19
and in Camp John Hay in Baguio City, from May 16 to 17.
Besides, Puregold Price Club, Inc. as well uses this as their promotional campaign not for the
end-user but for sari-sari store owners who serves as their primary distributor. Through Puregolds
convention to help these business owners and entrepreneurs, the benefit of acquiring
and maintaining more buyers to their supermarket would be potentially achieved, since these sarisari store owners would be purchasing from them giving them several benefits. As stated in Manila
Bulletins report:
The holding of the annual sari-sari store convention is just one of the many support
activities of Puregold for its Ka-Asenso members or Tindahan ni Aling Puring members.
The other benefits are Kitang-Kita Case at Kitang-Kita Packs, Super Suki SIM for instant
and additional business loading, Ka-Asenso Booklet, KAINdustriya for karinderya and
canteen owners and caterers, Barangay Asenso Caravan, Grand Ka-Asenso Salo-Salo,
Store Paint or Store Signage, Aling Puring account representatives services, Gold Card,
co-marketing activities with suppliers, and Negosyo seminars and trainings.
This is good strategy that Puregold Price Club, Inc. is organizing they have been continuously
promoting their products and would as well increase their sales, while helping small business owners
and entrepreneurs.

For a stay-at home moms like my mom, one of the hardest task she needs to do rightly is budgeting. I
know, because I saw my moms struggle in doing daily household budgets. From doing groceries to
separating basic needs to wants, my mom can do all these and I admire her for that. Just last
Saturday, my mom and I went to Puregold Imus to buy some grocery items.This super market is quite
small compare to Sm and Robinsons super market but it is amazing to know that grocery items
in PuregoldSuper Market is way cheaper than those two. Though this place is not as popular as its
competitors, I can say that Puregold is way better. From milk, instant noodles, canned goods to
toiletries, it is undeniably that Puregold has the lowest price.

Customer service is exceptional too, the place is so secure because the guards do
inspect each and every customers before they enter and the way he does it is
not too intimidating, I saw how the guard greeted us with a smile when he was
doing the inspection. I also appreciate the customer engagement that they
have, sales personnel are approachable and go beyond the extra mile, they are
ready to assist you when you are looking for something inside the super market. Cashiers are
also reliable, they compute the items right and give our receipt accordingly.
With this good experience in Puregold, I can say that this is another proof that mothers know whats
best for us. Indeed, thissuper market is the best choice for all stay at home moms who do household
budgeting. Puregold Super Market, I highly recommend it. http://www.reviewstream.com/reviews/?
p=109119

Puregold
August 18, 2011

One of my favorite Grocery chain. With almost hundred of branches

nationwide. Puregold is considered the store of the sarisari
storeowner, because of the wholesale price that is if your one of
sarisari store owner, far cheaper that other leading competitors. In
my own coparison prices has an average of 2 peso lower than other
leading grocery chain. Thats why you can find people which I
assume sarisari store owner because of the number of carts
they line in the cashiers lane.
Visiting puregold is a must to me every week beacause my brand of
bath soap, detergent soap and my babys diaper is available here. I
also buy my kids cookies and my husbands chips here. Other
needs such as clothes, furnitures and appliances are also available,
though Im not sure if all branches because I only visit few
of them.In Quezon City, Puregold in Araneta Avenue cor E.
Rodriguez is my bet, it has bigger eating place, few food chain, play
area for the kids and the grocery is super complete like they have
section for hard to find condiments like matamis na bao, powdered

chili pepper, sago, etcetera in tingi. ATM machines are also

found outside and an eating place to complete the ease of shopping
in almost all puregold branches.
Another thing I like is finding sales and promos. Like a buy 1 take 1
freshmilk, or a pouch of soysauce and a pouch of delmonte
pineapple tidbits for only 11 pesos, free face powder for every
purchase of drypers diaper, free sunsilk shampoo in every purchase
of creamsilk conditioner..yes, other supermarket or groceries also
has a promo like that but its more frequent that you can find
promos at puregold.
Puregold Price Club Inc. is engaged in wholesale and retail. It has now several retail stores
across Metro Manila and nearby provinces. The first Puregold Price Club Inc. store located at
Shaw Boulevard was established in 1998. With the rise of exclusive membership on affiliation to
exclusive supermarket, Puregold opened its door to the buying public without membership
requirements. This is the birth of continuous opening of Puregold stores in different parts of
Metro Manila and nearby province like Pampanga, Laguna, Cavite, Bulacan and Rizal. Puregold
Price Club Inc., with its competent employees is continuously serving its customers through its
effective customer service program and competitive price scheme. Its head office is located at
3rd floor Tabacalera Bldg., 900 D. Romualdez St., Ermita, Manila.

Company Description
Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998, as a company engaged in the business of buying,
selling, distributing, and marketing wholesale or retail goods and commodities.
The Company conducts its operations through three retail formats and store brands. Hypermarkets, through "Puregold Price Club",
offers a wide variety of general merchandise and a full-service supermarket with wholesale. Supermarkets, through "Puregold Junior",
operates as a neighborhood store which offers targeted consumer items and a limited variety of general merchandise. Lastly,
discounters are operated through "Puregold Extra", which offers a limited number of goods, comprising of the Company's top-selling
stock-keeping units that are intended to be sold quickly at prices lower than Puregold Price Club or Puregold Junior.
2011 saw the highest number of store openings in Puregold history with the launch of 38 new stores making its number of stores to a
total of 100. In the succeeding year, Puregold acquired a related retail company, Kareila, Inc., which operates 8 S&R Membership
Shopping Warehouses. It is the only membership store operating in the country. It also acquired Gant Group of Companies operating
in 19 Parco Supermarkets. By the end of 2013, Puregold is already operating a total of 210 outlets including 68 new Puregold stores it
opened during the year.
PGOLD and its subsidiaries are principally involved in the business of trading goods such as consumer products on a wholesale and
retail basis. Kareila Management Corporation, PCCI Subic Inc., Company E Corporation, Entenso Equities Incorporated, Inc.,
Puregold Junior Supermarket, Inc., and Gant Group of Companies Incorporated are the said subsidiaries of PGOLD as of 2013.
Source: SEC Form 17-A (2013)

http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=629

SWOT matrix for Puregold Price Club Inc company in United States
SWOT matrix for Puregold Price Club Inc company in United States. Strengths are: high sales growth rate, high
profits, existing distribution networks, experienced management, reduced labor costs, barriers of market entry,
domestic market is large.
The objectives of a SWOT analysis are to build on your strengths and minimize your weaknesses. Find comparable
companies to develop your own SWOT analysis. This sample SWOT analysis for Puregold Price Club Inc company in
United States can provide a competitive advantage.
Strengths
-high sales growth rate
-high profits
-existing distribution networks
-experienced management
-reduced labor costs
-barriers of market entry
-domestic market is large
Weaknesses
-low investments in research and development
-too many taxes
-too much competition
-low debt rating
-high costs
Opportunities
-new products and services
-venture capital
-growth rates
-new acquisitions
Threats
-increase in labor costs
-external business risks
-technological problems
-limited financial capital
Raw data analyzed for our reports is sourced from an array of the nation's government and private sources. In total, we
cover over a billion sourced data points from more than 100 million business operations. All data are free. This is a sample
SWOT analysis. Data points for this report: 290.

Pure Gold price club inc. SWOT Analysis

Strengths
brand
Customer Loyalty (Pure Gold price club inc.)

When
given a choice, customers are loyal to Pure Gold price club inc..
Instead of targeting all...

Brand Name (Pure Gold price club inc.)

A strong
brand name is a major strength of Pure Gold price club inc.. This
gives Pure Gold price...

Weaknesses

Customer Service (Pure Gold price clu

customer service hurts Pure Gold price club inc.

causes customers to flee to...

Technology (Pure Gold price club inc.)

Superior
technology allows Pure Gold price club inc. to better meet the
needs of their customers in...

Add

Opportunities

Threats

New Products (Pure Gold price club inc.)

New
products can help Pure Gold price club inc. to expand their
business and diversity their...

Volatile Costs (Pure Gold price club in

New Markets (Pure Gold price club inc.)

Change in Tastes (Pure Gold price clu

inc.) Consumers can change their tastes very q

New markets
allow Pure Gold price club inc. to expand their business and
diversify their portfolio...

costs mean Pure Gold price club inc. has to plan

where costs skyrocket....

price club inc. depends on knowing which...

New Services (Pure Gold price club inc.)

New services
help Pure Gold price club inc. to better meet their customers
needs. These services...

Puregold core net income hits record high of P4.52 billion up 18%
Manila, Philippines Puregold Price Club, Inc. (PGOLD) the second largestgrocery
retailer in the Philippines has reported a record core net income of Php4.52 billion for
the year 2014 which represents a 18% growth compared to Php3.83 billion
(excluding interest income of Php 134 million from corporate bonds)in 2013 beating
market expectations.I believe that 2015 will be another record year of profits for
Puregold as wecontinue with our expansion strategies of opening 25 Puregold stores
per yearand 2 S&R stores per year for the next 5 years excluding acquisitions as well
asthe continued increasing consumption from our customers. said
PresidentLeonardo B. Dayao.Puregold net sales increased by 16% to Php 84.70

billion for the year 2014 dueto the strong consumer demand from its 233 Puregold
stores; 9 S&RMembership stores and 6 S&R New York Style Pizza stores. Income
fromOperations grew to Php 6.48 billion in 2014, up by 19%.Puregold has a strong
balance sheet with a cash position of around Php 6.76billion and debt to equity ratio
of only 57%.In 2014, Puregold Group has a total of 248 stores with a net selling area
of about405,000 sqm.

Production Equipment and Utilities Used by

Supermarkets, Grocery Stores, and Delis
Tax Bulletin ST-690 (TB-ST-690)
Printer-Friendly Version (PDF)

Issue Date: April 13, 2011

Introduction
Supermarkets, grocery stores, and delis can purchase machinery and equipment used directly and
predominantly in the production of tangible personal property for sale without paying sales tax.
They can also purchase utilities they use to operate equipment used in production without paying
sales tax. This bulletin explains:

what type of machinery and equipment used in supermarkets, grocery stores,

and delis qualifies as production equipment; and

how to calculate the percentage of utilities used to operate production equipment.

Equipment used in production

Machinery and equipment may be purchased tax free if it is used directly and predominantly
(more than 50% of the time) in the production of tangible personal property for sale. The
manufacturing process can generally be broken down into three types of activities:
administration, production, and distribution. Only machinery and equipment used more than 50%
of the time in production can be purchased tax free.
Production starts with the handling and storage of raw materials at the plant site, in this case at
the store, and continues through the point where the goods are packaged and ready for sale.

In the case of supermarkets, grocery stores, and delis, most production takes place in the deli,
butcher shop, and bakery areas.
Machinery or equipment that is used directly during the production phase means machinery and
equipment that:

changes material to form the product to be sold; or

has an active role in the production of the product to be sold; or

is used in handling, storing, or conveying materials or products on the

production line; or

is used to package the product for sale.

To be exempt from tax, equipment must be used directly and predominantly in production of
food commonly sold by grocery stores, and not used to prepare "restaurant-type" food (i.e., food
or drink sold for on-premises consumption, sandwiches, self-service salad bars, food or drink
sold in a heated state, and unheated beverages that are not sold in the same form, condition,
quantities and packaging as they are ordinarily sold in grocery stores). (See "Restaurant-type"
food below.)

Butcher shop
Machinery and equipment used more than 50% of the time to process and package meat for sale
can be purchased tax free. This includes:

power meat saws, cubers, and grinders;

sausage stuffers and hamburger patty machines;

power tenderizers;

scales used to weigh processed meat for labeling; and

coolers and freezers used to store unprocessed product.

Coolers, freezers, and display cases that are used predominantly to store meat that has already
been processed, or that is packaged and ready for sale, do not qualify for exemption.
For more information, see Publication 852, Sales Tax Information For: Manufacturers,
Processors, Generators, Assemblers, Refiners, Miners and Extractors, and Other Producers of
Goods and Merchandise.

Deli area
Only equipment that is used more than 50% of the time to process food for sale at food stores
may be purchased tax free. Equipment used to cook, prepare, or package restaurant-type food for
sale is taxable.
Example: A deli purchases a slicer that will be used 75% of the time to slice deli meats and
cheese to be sold by the pound (prepackaged or sliced to order). The deli can purchase the slicer
without paying sales tax.
Example: A deli purchases a slicer that will be used more than 50% of the time to slice deli
meats and cheeses that will be used in preparing sandwiches for sale. The deli can't purchase the
slicer without paying sales tax because it is used more than 50% of the time to prepare
restaurant-type food.
Coolers and display cases used predominantly to store items not yet ready for sale (e.g., meats
and cheeses not yet sliced or packaged for sale) can be purchased without paying sales tax.
Coolers and display cases used predominantly to store packaged salads or other foods finished
and ready for sale cannot be purchased without paying sales tax.
Equipment used in the preparation of deli platters for sale, and coolers and display cases that are
used to store products that are packaged and ready for sale, do not qualify for exemption.

Bakery area
Equipment used more than 50% of the time to prepare, bake, and package bakery items for sale
may be purchased tax free as long as the baked goods are being sold for off premises
consumption.
Some examples of machinery and equipment that would qualify include:

mixers,

scales,

proof boxes,

ovens,

cooling racks, and

bread slicers.

Utilities
Fuel, gas, electricity, refrigeration, and steam (collectively, "utilities") used in the production of
tangible personal property for sale may qualify to be exempt from tax. Utilities are exempt when
used directly and exclusively in the production process. Therefore, if machinery and equipment
have both taxable and exempt uses, the portion of the utilities used in the production process will
qualify for exemption, even if the machinery itself does not. For purposes of the exemption,
adequate records must be maintained to support exempt use.
Example: A deli purchases a slicer that will be used 70% of the time to slice meats and cheeses
that will be used in preparing sandwiches for sale, and 30% of the time to slice deli meats and
cheeses to be sold by the pound (prepackaged or sliced to order). The slicer itself does not
qualify for the production exemption. However, 30% of the electricity used to operate the slicer
will qualify for the exemption since it is used directly and exclusively in the production of food
for sale.
You can have an engineering survey done to determine the amount of utilities used in production.
Also, Publication 852, Sales Tax Information For: Manufacturers, Processors, Generators,
Assemblers, Refiners, Miners and Extractors, and Other Producers of Goods and
Merchandise, will give you a formula to use in determining the amount of electricity used in
production (see Appendix A beginning on page 44). (Note: No formulas have been developed by
the Tax Department for other types of utility services.)

Refunds and use tax

If you pay sales tax on purchases of equipment or utilities that qualify for exemption, you can
apply for a refund of sales tax directly from the Tax Department. File Form AU-11, Application
for Credit or Refund, along with copies of your utility bills and proof of exempt use. For more
information see Tax Bulletin How to Apply for a Refund of Sales and Use Tax (TB-ST-350).
If sales tax is not charged or paid on taxable equipment or taxable utilities usage, you must to pay
the tax directly to the Tax Department. For more information see Tax Bulletin Use Tax for
Businesses (TB-ST-910).

What form to use

If you are purchasing machinery or equipment that qualifies as exempt, complete Form ST121, Exempt Use Certificate, and give it to your supplier.

You can purchase utilities that are used in production without paying sales tax by issuing Form
ST-121, Exempt Use Certificate, to your utility company. The utility company will not charge
sales tax on any utilities purchased, and you will be responsible to calculate and remit any tax
due on utilities not used in production by your business.

Taxable utilities
Utilities used for general lighting and front-end operations, or for freezers, coolers, and display
cases used throughout the supermarket or deli predominantly for the storage of goods packaged
and ready for sale, do not qualify for the sales tax exemption. This includes the frozen food,
dairy, and meat sections of the store.

"Restaurant-type" food
Ovens, fryers, heat lamps, toasters, coolers, etc., that are used in the storage, preparation, or
serving of restaurant-type food ( i.e., food or drink sold for on-premises consumption,
sandwiches, self-service salad bars, food sold in a heated state, and beverages ordinarily
dispensed at a soda fountain) can't be purchased without paying sales tax. Equipment that is used
in multiple areas of the store must be used more than 50% of the time in a production activity to
qualify as production equipment.

Produce area
Generally, machinery, equipment, and supplies used in the produce section of the supermarket
are not considered to be used in production. Any washing, trimming, and repackaging of produce
is considered part of the distribution or sale of the product. See TSB-M-82(7)S, Taxability of
Machinery, Equipment, Supplies and Energy Sources Used in Operating Produce Departments
in Supermarkets and Grocery Stores.

Note: A Tax Bulletin is an informational document designed to provide general guidance in

simplified language on a topic of interest to taxpayers. It is accurate as of the date issued.
However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation
may affect the accuracy of a Tax Bulletin. The information provided in this document does not
cover every situation and is not intended to replace the law or change its meaning.
http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/production_equipment_used_by_supermar
kets.htm
TALAVERA OF TODAY

Talavera is a first class municipality in the province of Nueva Ecija, Philippines. According to the
2010 census, it had a population of 112,515 people.[3]
It is bordered by Cabanatuan, Science City of Muoz, Aliaga, General Mamerto Natividad and Sto.
Domingo.

History and Topography[edit]

Present-day Talavera was formerly a barrio of Cabanatuan City. It was called Katugian which
means a place abundant in Tugue, an edible root crop.
The distance between Cabanatuan's town center and Katugian was critical during the early phase of
its development although it was only 15 kilometres (9.3 mi). The parish-curate at that time
recommended to the Spanish administrators a separate and independent administration of Katugian.
By a royal decree issued on November 12, 1852, the plan making Katugian a town was approved.
There was no formal inauguration of the new town in accordance with the royal decree. However,
the Augustinian parish-curate of Cabanatuan, Fr. Gregorio Crisostomo, appointed the first officials of
the town by sending his co-adjutor, a certain Pedro Estanislao Pascual, to handle the religious phase
of the administration of the new town during Sundays and Holidays only.
The first barrios that composed the new town were La Torre, Pulong Buli (Now Sto. Domingo),
Concepcion and Valle. Based on the petition presented to the Alcalde Mayor (governor) of Nueva
Ecija, forwarded to the governor general in Manila, the Talavera of the Crown of the
Princess was approved on February 17, 1853, by the Governor General.
In 1954, Talavera lost some territory when the barrios of General Luna, Morcon, Mabini, Ricarte,
Casili, and Picon, together with sitios Plaridel and Bosque were separated to form the town
of Llanera along with some territory from Rizal and San Jose.[4]
The municipalitys terrain is relatively flat, with slope ranging from 0 to 3%. Due to the flat
topography, the land is suited for agricultural, commercial or industrial development.

Economy[edit]

Public market and stores

Many government projects beneficial to the municipality's citizens were constructed, including the
Nueva Ecija University of Science and TechnologyMunicipal Government of Talavera(NEUST
MGT), an extension campus of the said university; Talavera Eternal Park, the municipality's
cemetery; a town library, a government-run drugstore, and a tourist attraction called Tren ng Bayan,
a kiddie ride that goes around the town park.
There are also tourist attractions in Talavera. It has a town plaza situated near the municipal hall.
Crystal Waves Hotel and Resort is a prominent attraction situated in Brgy. Dinarayat.

Transportation[edit]
There are 24.77 kilometres (15.39 mi) of national roads, including the 16.93 kilometres
(10.52 mi) Maharlika Highway/Asian Highway 26 that passes through the municipality. Due to its
central location, the Municipality of Talavera is one of the pivotal transport points in Central Luzon.
Talavera is accessible by all means of land transportation. Regular jeepney trips are from 5:00 am to
9:00 pm. Tricycles are available 24 hours a day. Several bus companies also use the Talavera route
from Cagayan Valley and Aurora Province to Manila, Cabanatuan City, San Jose City, Baguio City
and other destinations.
The proposed Talavera Municipality Diversion Road include the Baluga- La Torre- Dimasalang SurGulod- Bantug Hacienda- Campos- Burnay- Sicsican Matanda- and Bagong Silang with an
approximate length of 11.4 kilometres (7.1 mi). The diversion road when constructed will improve the
settlements, the movement of goods and services and even the flow of traffic in the municipality. This
project will include drainage and 1 RCDG bridge.

Health and education[edit]

PJGMRCMC Extension Hospital

In terms of education, Talavera is served by both public and DepEd-accredited private schools. The
largest elementary school is Talavera Central School, situated in the town proper. The largest
secondary educational institution is Talavera National High School, colloquially knows as TNHS.
In terms of healthcare, Talavera's populace is served by Dr. Paulino J. Garcia Memorial Hospital, a
public hospital simply known as PJG. Medical and dental clinics also serve the municipality.