PSMT Philippines

completed

The project involves the setting up of seven warehouse stores, in two phases, in different parts of the Metro Manila by PriceSmart Philippines (PS Phils or the company). PS Phils, which functions under the brand name of S&R Price, was established in 2000. Ownership is 52% by PriceSmart (PSMT) based in San Diego, USA and 38% by the The E Class Corporation which is a local Philippine corporation owned by William S. Go and Robert C. See. The remaining 10% of PS Phils is owned by First Metro Investment Corporation, the investment arm of Metro Bank, the largest commercial bank in the Philippines. Both the company and PSMT are modeled after successful PSMT membership warehouse in Central America and Caribbean.The warehouse stores, which consist of two models - either 40,000 square feet or 50,000 square feet, are being located within Metro Manila to take advantage of dense populations and relatively high levels of consumer demand. The locations are close to and have easy access from major roads. They sell a variety of food and consumer goods with an emphasis on quality, low prices and efficient operations. The warehouses typically carry a much smaller product range compared to supermarkets - 2,500 stock-keeping ("sku") units (vs. 25,000-30,000 sku units for supermarkets) including apparel, food services, bakery, photo centers and tire centers. Approximately 50% of sales will initially be derived from wholesalers sourcing from the local market (particularly fresh produce). The target customers are consumers and small businesses. The shopping format includes an annual membership fee that averages approximately US$25 with annual purchases averaging about US$1,300 per member.