SM Retail reports strong underlying growth in the first half. Puregold acquires BudgetLane supermarket chain.
SM Retail reports sustained 6% growth in total sales
For the first half of this year, SM Retail reported 6% growth in total sales to PHP96.7bn (US$2.1bn) and 13% increase net income to PHP3.1bn (US$67.3m). The food retail business has continued to expand in both urban and rural communities, opening 20 new stores in Luzon, Visayas and Mindanao. They are also finalising the acquisition of three Cherry Foodarama stores based in Mandaluyong, Quezon City and Antipolo. At the end of June 2015, SM Retail had a total of 289 stores including 51 SM stores with a selling area over 683,000sqm, 41 SM Supermarkets, 43 SM Hypermarkets, 127 Savemore stores and 27 WalterMart stores. Meanwhile, at the end of June, Retailer Alfamart increased its store holding to 50 outlets.
Puregold acquires BudgetLane chain
Puregold Price Club has bought eight store supermarket chain BudgetLane as part of its growth and expansion strategy. This follows the acquisition of nine supermarkets owned by NE Inc. in February. These stores are strategically located in primes areas of Metro Manila and Luzon. Puregold commented, "The acquisition reinforces the company's continuing commitment and focus to serve the broad consumer mass market. It will serve as a key component to the growth and expansion strategies of the company." Acquisition costs have not been disclosed. In December last year, the retailer announced aims to grow its grocery chain by 50% from 2015 and 2019 and plans to open an additional 125 stores over the next five years.