PriceSmart Jamaica

completed

PriceSmart, Inc. (PSMT the company) is a retail enterprise established in 1997 and modeled after the first membership merchandising chain in the United States, Price Club. PSMT is a volume-driven merchandise and service provider, delivering quality, value, and low prices to the rapidly emerging consumer class in Central America, the Caribbean, and Asia through an effective and efficient pipeline that leverages economies of scale in aggressive buying, low-cost distribution, and streamlined operations. The company has grown at an average rate of 115% over the last 3 years.PSMT’s expansion program in Jamaica involves the construction and operation of two membership-shopping warehouses in Kingston and Montego Bay. The 50,000 sq. ft warehouses will follow the successful concept adopted by PSMT in its expansion in Central America, other Caribbean islands, and more recently the Philippines. The stores will be located in highly visible, easily accessible positions, and in densely populated areas to appeal to middle income consumers. They will sell a variety of food and consumer goods with an emphasis on quality, low prices and efficient operations. The warehouses will typically carry a much smaller product range compared to supermarkets and will include apparel, food services, bakery, photo centers, tire centers, etc. Approximately 50% of sales will be derived from products sourced from the local market. The target customers will be consumers and small businesses. The shopping format will include an annual membership fee of approximately US$25 with expected annual purchases averaging US$1,250 per member.