PSMT Philippines

completed

The project involves the setting up of seven warehouse stores, in different parts of Metro Manila by PS Phils. The warehouse stores are being located within Metro Manila to take advantage of dense populations and relatively high levels of consumer demand. They sell a variety of food and consumer goods with 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. About 50% of sales are derived from products sourced from the local market. The target customers are consumers and small businesses. IFC''s Role:- Provide long-term financing which is otherwise not available.- IFC presence will help mobilize other medium to long-term sources of funding.Development Impact:- Introduction of a relatively new retailing concept which through increased efficiencies of purchasing, logistics, technology and distribution will provide consumers with lower prices on and wider access to, quality food and consumer goods.- Better value for the mom&pop "sari-sari" stores (largely small and medium enterprises and micro enterprises).- New markets for local suppliers that produce world class products.