Case Study_Puregold and Savemore

LOCATION

Industry Background

Industry Background

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supermarket, a form of grocery store, is a selfservice store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store, also selling items typically found in a convenience store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box store.

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The supermarket typically comprises meat, fresh produce, dairy, dairy, and baked goods departments, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as household cleaners, pharmacy products and pet supplies.

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The traditional suburban supermarket occupies a large amount of floor space, usually on a single level. It is usually situated near a residential area in order to be convenient to consumers. Supermarkets usually allocate large budgets to advertising, typically through newspapers. They also present elaborate in-store displays of products.

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To maintain a profit, supermarkets attempt to make up for the lower margins by a higher overall volume of sales, and with the sale of higher-margin items. Customers usually shop by placing their selected merchandise into shopping carts (trolleys) or baskets (self-service) and pay for the merchandise at the check-out.

Puregold Company Background

Company Overview 

Puregold Price Club, Inc. engages wholesale and retail of sale of food and non-food products in the Philippines. It offers food products, such as dairy products, meat and meat products, vegetables, and fruits; and non-food products, including cosmetics, clothing, shoes, household chemicals, appliances and household goods, toys, and sports items. The company operates Pure Puregold Price Club hypermarkets that offer food and non-food products to retail customers and resellers; Puregold Junior supermarkets, which sell products primarily to retail consumers; and Puregold Extra discount stores. As of August 26, 2011, it operated 46 hypermarkets, 19 supermarkets, and 7 discount stores in 20 cities and 22 municipalities in Metro Manila and Luzon Island. The company was founded in 1998 and is based in Manila, the Philippines

Vision To be the Most Customer-Oriented Hypermart offering a One-Stop Shopping convenience and Best Value to our Customers.

Mission Sa PUREGOLD, Always Panalo! Our Mission is to Provide Products, Services and Business Opportunities to Every Filipino Family. We Establish Lasting Relationship with Our Suppliers and Business Partners. We Strive to Promote the Personal and Professional Development of our Employees. We Commit Profitable Results to the Stockholders.

Values Sa bawat araw, PUREGOLD kasama mo! Sense of Belonging - Feeling that one has an essential role to play as part of the PUREGOLD family Customer Service - Providing products and services that meet the demands and expectations of customers Dynamism - Open, adaptive and responsive to the changing environment Commitment - Dedicated and conscientious focus on work Integrity and Loyalty - Honor, credibility, honesty, dignity, "palabra de honor", "walking the talk"

History  The advent of one-stop shopping convenience began in 1998 when PUREGOLD opened its first branch along Shaw Blvd. in Mandaluyong City. The store offered a wide array of goods from groceries, apparel, household accessories and furniture at very affordable prices. During that time, the onestop shopping philosophy was still a novel idea to consumers but with the excellent service and quality products it provided, it did not take long for Puregold to make its mark in the retail industry. Today, it has grown into a giant retail chain with more than 50 stores nationwide.

History  PUREGOLD TODAY No. 1

Retailer in the Hypermarket Format

No. 2

Retailer

101

Stores

Over 1,500

Suppliers and Trade Partners

17,899

Employees

Over 120,000

Sari-Sari Stores and Small Businesses Served

Over 400,000 SQ.M.

Building and Retail Space

Over 600 Million

Sales Transactions

Company Stores PRICE CLUB

offers a wide variety of general merchandise and a full-service supermarket with wholesale. JUNIOR

a neighborhood store which offers targeted consumers’ items and limited variety of general merchandise, without wholesale operations.

EXTRA

offers very limited number of SKU's at discounted prices, provides consumers with a discount on time, not just price

Savemore Company Background

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-A chain of neighborhood grocery stores under the SM Food Retail Group -Other Food Retail formats under SM are SM Supermarket, SM Hypermarket and Makro -Tag Line “At you Service!”

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- Savemore stores complement the regular SM Supermarket as it caters to shopper’s last minute purchases and their day-to-day budget. - offers a more convenient way to shop as it provides not just the fresh food items but also grocery items, as early as 8am daily -It’s located just around the corner  -. Despite the smaller space, Savemore Market continues to offer a wide variety of products.

SAVEMORE “Save More, your neighborhood SM”

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What makes the Savemore experience different from that of the traditional SM Supermarket?

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Unlike SM Supermarket and SM Hypermarket, Savemore supermarkets are located outside SM Malls, yet still carrying the SM brand. The first one was opened in 1999. It is still part of the SM network where customers can have the same SM shopping experience – value for money, convenience, and customer service with a smile.

What is the concept behind Savemore Supermarket? 

Savemore is SM’s way of bringing in the SM shopping experience nearer to where our shoppers live and work. It is a neighborhood store that prides itself on great merchandise selection, convenience and excellent customer service. Instead  of customers having to go to the mall, SM is now  becoming part of our customers’ neighborhood.

How different is it from SM Supermarket and SM Hypermarket? How does it compare to the other two in terms of store size and merchandise?

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SM Supermarket and SM Hypermarkets are destinations; places that our customers have to plan to go to. Savemore, on the other hand, being part of the neighborhood, creates convenience for impulse purchases or last-minute needs.

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Because they are smaller, with an area of not more than 5,000 square meters, it can be put up almost anywhere, bringing them closer to where customers live and work. Despite its smaller selling area, merchandise listing is still complete, but limited to about 25,000 articles.

If the concept of Savemore is like that of a neighborhood supermarket, is the demographics of the area take into consideration? How does this affect merchandise selection?

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Demographics play a vital role in the selection of sites to open. The following are being studied: traffic flow and other establishments surrounding the store, such as schools, wet markets, etc. Adaptation according to the profile of the market in the area is as important.

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Recognition of the customers’ daily need for fresh meat, fruits, and vegetables: 

With Savemore, customers need not have big refrigerators to stock up on fresh items. They can find their fresh needs at Savemore daily, and at any time of the day.

What considerations do you take when planning Savemore locations? 

We open Savemore in areas where we feel we are welcome to be part of our customers’ lifestyle. Our  main message to them is “Good food need not be expensive.” – Henry Sy (Phil. Star interview)

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It’s all in the spirit of customer service. Bringing in the convenience and reliability of an SM supermarket closer to customers. Here, Savemore can offer them a wide range of quality products, competitively priced, in a clean, air-conditioned environment, with our trademark customer service.

PUREGOLD

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PureGold-Price Club PureGold Junior PureGold Extra

Puregold Price Club Inc. 

PureGold opened its first store at Shaw Blvd., Mandaluyong City during the late 90’s.

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The PureGold concept (Price Club) is the same with the concept that Duty Free offers.

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Also, PPCI is the same with the services and merchandises that Makro, S&R, and other exclusive supermarkets but without the need of membership. offers a wide variety of general merchandise and a full-service supermarket with wholesale.

Puregold Junior 

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a neighborhood store which offers targeted consumers’ items and limited variety of general merchandise, without wholesale operations. Mostly, Puregold Junior branches are strategically placed around wet and dry market.

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With the assumption that customers would prefer to do their grocery at Puregold because of these advantages: 1. 2. 3.

Convenience (air-conditioned) Safety and Security Products are offered at a reasonable price

Puregold Extra 

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offers very limited number of SKU's at discounted prices, provides consumers with a discount on time, not just price. The concept of Puregold Extra is the same with convenience stores (Ministop, 7eleven, etc.) but has a relatively larger space, closely comparable to a grocery store.

Savemore Branches Nationwide Urban Areas - Riverbanks Mall, Marikina 1999 – The first Savemore Market

SAVEMORE RIVERBANKS MALL, MARIKINA

-Festival Mall, Alabang - Savers Square Center Taft - North Edsa Annex - Savemore Mezza - Savemore Laong laan - Savemore P. Tuazon - Savemore Del Monte - Savemore Amigo Mall - Savemore Mega Center -Savemore Taft - Savemore Broadway - Savemore Anonas - Savemore Libertad - Savemore Novaliches - Savemore Visayas Ave - Savemore West Kamias - Savemore Pasong Tamo - Savemore Satolan - Savemore Malabon - Savemore Market City - Savemore Agora

Rural Areas - Elizabeth Mall, Cebu 2003 – Savemore Market opened in first provincial store

SAVEMORE ELIZABETH MALL CEBU - Jaro, Iloilo

SAVEMORE JARO ILOILO

- Angono, Rizal - Morong Rizal - Parkmall Cebu - Nagtahan - Tanay - Savemore Solano - Mendez, Tagaytay - Savemore Legaspi, Baliuag, Bulacan - Savemore Bacolod East - Savemore Cagayan De Oro

• These Savemore stores are located outside

an SM mall to bring the SM shopping experience closer to where shoppers live and work.

• Savemore Market brings convenience to the

shopper

and

affords

her

to

save

on

transportation costs through its proximity to barangays, subdivisions and places work.

• Savemore Market makes it convenient for

shoppers to shop leisurely for meat, poultry, seafood, fruits and vegetables in a clean and air-conditioned environment.

Puregold Branches METRO MANILA

QUANTITY

Caloocan

2

LP

1+2

Malabon

CENTRAL

QUANTITY

Bulacan

5+1

1

NE

1

Makati

1

Pampanga

4+3

Mandaluyong

1+2

Tarlac

1

Manila

6+2

Marikina

1

Muntinlupa

2

Paranaque

2+3

Batangas

0+2

Pasay

1

Cavite

4

Pasig

2

Laguna

6+6

QC

8+4

Quezon

1+1

SJ

1

Rizal

4+3

Tagaytay City

1

Taguig Valenzuela

1

CALABARZON

QUANTITY

Puregold Branches

CAR

QUANTITIY

BICOL

QUANTITY

Baguio City

1

Albay

1

Benguet

1

Naga City

1

Puregold total: Puregold Jr. total:

61 28

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Almost half (48%; 43 branches) of the Puregold branches are established in Metro Manila High market in Metro Manila

Spread

Urban 

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In Metro Manila, branches are near to each other Customers can almost easily go from one branch to another Multiple number of branches per city (e.g. Manila, Quezon City, Paranaque, Las Pinas)

Rural  

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Branches are far to each other Customers cannot easily go from one branch to another For the provinces, there is only 1 branch for almost all of the cities (e.g. Pampanga, Cavite, Quezon, Baguio City, Tagaytay) Dispersion can go as far as only 1 branch per province (e.g. Tarlac, Nueva Ecija, Albay, Camarines Sur)

Savemore Floor Plan  TOP VIEW

Savemore Floor Plan FRONT VIEW

Savemore Floor Plan ISOMETRIC VIEW

Savemore Floor Plan SPOT PERSPECTIVE

Savemore Floor Plan SPOT PERSPECTIVE

Savemore Floor Plan SPOT PERSPECTIVE

PUREGOLD FLOOR PLAN

Puregold