Case Study_Puregold and Savemore

LOCATION

LOCATION

Industry Background

Industry Background

Industry Background

Industry Background



 supermarketsupermarket, a form of, a form of grocery storegrocery store, is a self-, is a

self-service store offering a wide variety of food and service store offering a wide variety of food and household merchandise, organized into

household merchandise, organized into departments.

departments.



 It is larger in It is larger in size and has a wider selection than asize and has a wider selection than a

traditional grocery store, also selling items typically traditional grocery store, also selling items typically found in a convenience store, but is smaller and

found in a convenience store, but is smaller and more limited in the range of

more limited in the range of merchandise than amerchandise than a hypermarket or big-box store.



 The supermarket typically comprises meat,The supermarket typically comprises meat,

fresh produce,

fresh produce, dairydairy, and baked , and baked goods departments,goods departments, along with shelf space reserved for canned and

along with shelf space reserved for canned and packaged goods as well as for various non-food packaged goods as well as for various non-food items such as household cleaners, pharmacy items such as household cleaners, pharmacy products and



 The traditional suburban supermarket occupies aThe traditional suburban supermarket occupies a

large amount of floor space, usually on a

large amount of floor space, usually on a singlesingle

level. level.



 It is usually situated near a It is usually situated near a residential area in orderresidential area in order

to be convenient to consumers. to be convenient to consumers.



 Supermarkets usually allocate large budgets toSupermarkets usually allocate large budgets to

advertising, typically through newspapers. They also advertising, typically through newspapers. They also present elaborate in-store displays of products.

 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

Puregold

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

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.

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

one-stop 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

 -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

 - 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

SAVEMORE

 What makes the Savemore experience different from

 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 

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?

 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

 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?

 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

 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)

 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

 PureGold-Price Club

 PureGold Junior

Puregold Price Club Inc.

 PureGold opened its first store at Shaw Blvd.,

Mandaluyong City during the late 90’s.

 The PureGold concept (Price Club) is the same with

 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

Puregold Junior

 a neighborhood store which offers targeted

consumers’ items and limited variety of general

merchandise, without wholesale operations.

 Mostly, Puregold Junior branches are strategically

 With the assumption that customers would prefer to

do their grocery at Puregold because of these advantages:

1. Convenience (air-conditioned) 2. Safety and Security

Puregold Extra

 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

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

• 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 1 Makati 1 Mandaluyong 1+2 Manila 6+2 Marikina 1 Muntinlupa 2 Paranaque 2+3 Pasay 1 Pasig 2 QC 8+4 SJ 1 Taguig Valenzuela 1 CENTRAL QUANTITY Bulacan 5+1 NE 1 Pampanga 4+3 Tarlac 1 CALABARZON QUANTITY Batangas 0+2 Cavite 4 Laguna 6+6 Quezon 1+1 Rizal 4+3 Tagaytay City 1

Puregold Branches

 Almost half (48%; 43 branches) of the Puregold

branches are established in Metro Manila

Urban

 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

 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

Savemore Floor Plan

Savemore Floor Plan

Savemore Floor

Plan

Savemore Floor Plan

Savemore Floor Plan

Savemore Floor Plan