Ayala, Puregold launch supermarket in UP Town Center
MANILA, Philippines – AyaGold Retailers, Incorporated, a 50-50 joint venture of Ayala Land Incorporated (ALI) and Puregold Price Club Incorporated (Puregold) launched Monday, July 27, its maiden supermarket – Merkado Supermarket.
AyaGold's primary purpose is to build and operate mid-market supermarkets in key locations within the country. It plans build 8 to 10 Merkado supermarkets over the next 5 years.
Located at the UP Town Center, Katipunan Avenue, Quezon City, Merkado Supermarket further extends the existing partnership between ALI and Puregold.
The first store will open to the public Friday, July 31.
Puregold serves as the anchor supermarket at Ayala Malls Harbor Point in Subic and Ayala Fairview Terraces in Quezon City.
Opportunity for growth
Minimum investment for one Merkado Supermarket store is P200 million ($4.39 million). Average store size is between 2,000 to 2,500 square meters.
AyaGold general manager Cesar B. Cudala said in a press briefing Monday that Merkado Supermarket will target the broader middle income market and will primarily be located within Ayala Land’s malls or mixed-use community developments, although the joint venture is open to the idea of puttin up standalone stores in the future,
ALI vice president Cora Dizon said Merkado Supermarket plays a significant role in ALI’s business portfolio, as it not only strengthens and expands its retailing business, "but is also a testament to our commitment in delivering a holistic environment and experience to the mixed-use communities that we are developing.”
ALI started with convenience and department stores joint ventures, among them FamilyMart and Wellworth.
AyaGold president Anthony Sy said the mall-based Merkado Supermarket will allow them to tap a broader market.
"In the case of UP Town Center, this could range from students to young professionals and young families,” Sy said.
Sy added there are opportunities for Merkado Supermarket to grow in the domestic retail market, despite the rapid expansion of supermarket stores in the country.
“The opportunity for Merkado Supermarket to grow is quite big as we see there are gaps in the market. As long as we can present a different strategy and we're able to attract and hit the required target market, there's room for us to grow,” Sy said.– Rappler.com
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