MANILA, Philippines – Puregold Price Club Inc., the grocery chain operator led by tycoon Lucio Co, is embarking on an ambitious expansion plan designed to grow faster than the national economy. The company has allocated a substantial P8.8 billion in capital expenditures for 2026 to fuel this growth, targeting a revenue increase of 5 to 7 percent.
This growth target potentially outpaces the Philippine economy, which many institutions forecast to expand at less than 5 percent this year amid challenges from a domestic infrastructure corruption probe and geopolitical tensions in the Middle East.
The cornerstone of the strategy is a significant store rollout. Puregold plans to open 30 new Puregold stores and 30 Puremart outlets this year, supported by P2.2 billion of the capex budget. The focus is on organic expansion into second- to fourth-class municipalities, aiming for an 8 to 10 percent increase in its store network to capture rising consumer spending in provincial areas.
Beyond its core brands, Puregold is investing P2.8 billion to grow its membership shopping segment. This includes opening three new S&R warehouse clubs and ten S&R quick service restaurants.
To ensure these new stores operate efficiently, the company is bolstering its backbone. An P800 million investment is earmarked for logistics and supply chain strengthening, while P3 billion is allocated for maintenance, solar energy projects, and information technology upgrades.
These investments support a multi-pronged approach to win customers. Puregold is implementing localized product assortments, tailored pricing strategies, and enhanced wholesale programs to increase customer loyalty and the average size of shopping baskets.
The aggressive expansion reinforces Puregold's position as a bellwether for Philippine consumer demand. The strategy is anchored on the country's growing middle class and sustained retail appetite. By the end of 2025, the company already operated 784 stores nationwide across various formats, including hypermarkets, supermarkets, convenience stores, and membership warehouses.
The company's 2025 financial results demonstrate the underlying strength of this market. Consolidated net sales rose 10.6 percent to P242.45 billion, while net income increased 8.8 percent to P11.34 billion. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 13.9 percent, driven by higher foot traffic and consumer spending.