Indeed what is next for Puregold? This is just my opinion so please bear with me.
In my recent vacation in the Philippines(both in San Mateo and in Binmaley) I noticed this weird feeling in the air. If you are a frequent commuter in Commonwealth Avenue you will surely not miss this big Puregold near St.Peter’s Parish and the Puregold Jr. before making that right turn going to Batasan. Also upon entering San Mateo territory you will see another huge Puregold in the intersection between San Mateo and Marikina City.
My fiancee and I have a sari-sari store in her house which is being manned by her mom. It was noticeable in the past few weeks that the store’s sale seems slowing down. That is a sign where people are now switching to stock-up weekly groceries from the nearest Puregold. One thing more just before her village a budding Puregold Jr. is in its final stage of construction. This will surely kill small sari-sari stores since the day-to-day grocery needs will now be a tricycle away.
I don’t blame Puregold for that, I guess that is the way to go. So in my opinion why not switch whatever small business that you have to sell or complement what these huge corporate stores offer? Or better yet be an investor of Puregold.
On the other hand it is a different story in my home province. To date I have not heard yet of a new Puregold in either Dagupan City or in Lingayen. But as you remember the north is one of Puregold’s target. Yes the northern provinces will surely be cash cow for Puregold. But they should not be overconfident. In Pangasinan long before the rise of hypermarts and supermarts, family owned grocery stores has been the big business and two of that is CSI and Magic.
That is why there is a different kind of air back in my province, that is I smell fierce competition. CSI started the grocery store with the most goods while Magic is the pioneer of the mall style format.
These two companies first geared themselves to such competition when a rumor that SM is seeking location to put up a mall in the nearby areas of which our town, Binmaley, was the target. SM has other target back them which was Rosales but overtime the dreamed SM Binmaley never came but only SM Rosales which draws the Pangasinenses.
Also Robinsons put up their mall in the vicinity of Calasiao. But the two are mainly mall format unlike Puregold. Thus the fierce competition seems to be between CSI, Magic, and Puregold. To date both CSI and Magic has started expansion by putting up medium size grocery and mini-mall. CSI expanded to the western part by putting up CSI in Alaminos City and what I heard last is Lingayen. Magic meanwhile has one in our town of Binmaley near the public market.
These two are targeting areas that has been away from what SM or Robinsons possible area that is why such will be a challenge to Puregold since that is the same are it is targeting.
There is only one good thing this brings, that is more choices for the consumers.
The latest news I heard about Puregold is their expansion in Mindanao and purchase of similar store format in Metro Manila and some parts in the Southern Tagalog thus decreasing direct competition. To date as well Puregold’s share price started to slow down from its continuous uptrend. With the positive reception and continuos expansion after about a year form its IPO, I guess Puregold(PGOLD) will be a good buy once the Philippine Stock Market corrects.
Disclamer: The above is the opinion of the blogger. Trade at your own risk.