Puregold Price Club Inc., the second largest supermarket chain operator in the country, said it earmarked P2.5 billion for capital expenditures this year to build more grocery and conveniences stores nationwide.
Puregold said in a presentation during an analysts briefing it budgeted P1 billion for the rollout of 25 new Puregold stores, P1.2 billion for the construction of two S&R stores, P150 million for 25 new Lawson stores and another P150 million for 10 S&R quick service restaurants.
Funding for this year’s spending will come from internally generated cash and short-term untapped bank credit lines, it said.
The grocery chain owned by billionaire Lucio Co expects consolidated net sales to grow 8 percent to 10 percent this year, slower than the 15.9-percent increase registered in 2016.
Sales will primarily be driven by positive net sales growth from existing Puregold and S&R stores, Puregold said.
It also expects 2-percent to 3-percent same-store-sales growth for Puregold and S&R stores.
The opening of 25 Puregold stores and two S&R outlets and the full operation of previously acquired supermarkets NE Bodega and Budgetlane will also help the company achieve its net sales target this year, it said.
Puregold said it would continue to pursue acquisitions and expansion in new locations.
Puregold had a total of 329 stores as of end-2016, with consolidated net selling area of 486,700 square meters.