INDUSTRY ANALYSIS
Porter’s Five Industry Forces Model
Rivalry among existing firm

Puregold's main competitor is SM Hypermarkets. If SM tries to buy Puregold's suppliers,
bargaining with them may become a major factor.

The rivalry among the competitors of Puregold in this field of business is fierce high,
because competitors like SM and Robinson's Retail Group are funded by massive
corporations with aggressive expansion plans.

Although Puregold is marketed as one of the top hypermarkets in the Philippines, SM is still
the top hypermarket in the nation, and both businesses are excelling in their own industries.
They are both upgrading and competing.
Threats of new entrant

Puregold offers limited imported goods. However the new entrants supermarket like landers
produce imported and local goods.

Puregold is already existed in the market for the long run, their products and strategy are
easy to imitate.

It is also difficult to penetrate due to the high fixed expenses connected with lease of land
and buildings in desirable locations. This calls for significant financial outlays.
Threats of substitute product

Puregold focuses on resellers, targeting the lower-income segments. When the substitute
item is cheaper than the industry’s item – in this way putting a maximum on the cost of the
industry’s product.

When the switching cost is low, stopping the customer from buying the substitute rather than
the industry’s product, at that point the risk of substitute items is high.

Another thing is that they should produce other products or they need to reduce the demand
for that product because some customers are switching to an alternative product.
Bargaining power of buyers

Puregold tend to decrease its prices in order to attract people to buy from them.\

Customers can make the most of their shopping experience with the Puregold Perks Card by
enrolling in the program, which was introduced in 2001. Every time a customer shops at a
Puregold store nationwide, the program gives them points.

Puregold also launched its own mobile apps so users can select their items and submit orders
at any time in an effort to make grocery shopping simpler, more effective, and less timeconsuming.
Bargaining power of suppliers

Puregold build good relationships with their suppliers so in that way the company will be
less likely to have suppliers barter over their product offers.

Puregold has large fast-moving consumer goods companies are key suppliers like P&G,
Unilever, URC, etc.

Bargaining power of Puregold is limited among key suppliers due to competition for key
accounts with retail chains. Because of their national distribution networks, suppliers can be
moderately powerful when expanding outside of Metro Manila.
Critical success factors (CSF)
These variables are based on the determined CSFs of the companies as well as the
internal and external strengths and weaknesses of each company.
Strategy- For retailer, Puregold price club Inc. encourages its consumers to follow that example.
Puregold's goal is to be a responsible company that reuses, recycles, and minimizes whatever
resources are available.
Employees- Since almost all of us are loyal buyers of puregold price club inc., I'm sure you'll
agree that we can honestly declare that this company's hiring procedure was effective. because
they are all excellent at what they do. Despite the fact that some employees have made this
problem commonplace, we can't always avoid having workers who don't comprehend how to
adhere to the rules.
Online and face to face selling-
Customer service- In summary, there are still a lot of individuals who like them because, in
addition to almost always having what they require, the staff members are accountable for their
work. They provide nice and clean service, which keeps their client loyal and keeps them in
company.
Capital-
RETAIL MARKET RESEARCH REPORT
Retail market encompasses all business activities including the direct sale of products or services
to customers, which are often made for domestic or personal use. The retail market share in the
Philippines is expected to increase by USD 70.67 billion from 2021 to 2026, and the market's
growth momentum will accelerate at a CAGR of 11.68%.
The growing demand for convenience food products is notably driving the retail market growth
in the Philippines, although factors such as the threat from counterfeit products may impede
market growth. Our research analysts have studied the historical data and deduced the key
market drivers and the COVID-19 pandemic impact on the retail industry in the Philippines. The
holistic analysis of the drivers will help in deducing end goals and refining marketing strategies
to gain a competitive edge.
Puregold Price Club Inc. has direct competitors as to which is the cheaper and better supermarket
(Puregold vs. SM supermarket). SM Supermarket is part of the same group that operates SM
Hypermarket and Save More. Savemore is an independent medium-sized supermarket. Designed
as a convenience store for impulse purchases, Savemore serves shoppers in communities with
limited or non-existent grocery inventory. As of the end of March 2021, the Pure Gold Group has
479 stores nationwide. Most of these are his Puregold stores that are standalone, but others are in
Ayala Mall. Puregold's growth is staggering considering it only started in 1998. On the other
hand, some products in SM Supermarket are either cheaper or more expensive than Pure Gold or
vice versa. What is certain is that both major food retailers offer excellent value to their
customers. It's up to the customer to decide which supermarket offers the cheaper price.
It is also an indirect competitor of PureGold Price Club and is owned by PureGold Price Club.
S&R is he one of the most popular upcoming shopping brands in the Philippines. S&R is
modeled on the member purchasing model of US giants Costco and Sam's Club through an
effective system based on aggressive purchasing, cost-effective sales, optimized processes and
bulk pricing offering great added value to customers.
PEST ANALYSIS
POLITICAL
ECONOMIC
SOCIAL-
TECHNOLOGICAL
DEMOGRAPHIC
Political aid for
Increase in Gross
Buying in bulk and
Self-checkout for
globalization.
Domestic Product
collecting endless
small purchases.
or GDP.
data.
Tax guidelines and
Continued growth
Consumer
Improve online
trade regulations.
of developing
preference
application.
countries.
Comply with labor
Increase in
Healthy lifestyle
Utilize social media
laws, laws and tax
Economic Growth
trend
for advertisement.
systems.
of the country.
Strength

Reasonable price

Market popularity

Almost everything you needs is accessible.

Good relationship with customers
Weaknesses

Many competitors

Low investment in research and development.

Repetition of product
Opportunities

Continued market development.

Product invention

Expansion of branches
Threats

Insufficient capital

Technological problems

Incompetent of online websites
Puregold Price Club, Inc. (PGOLD) has reported consolidated net income of Php 2.15 billion for
the first quarter of 2022. This is 6.5 times higher than the same period in 2021. This was fueled
by the company's continued organic expansion fueled by food retail. Prudent cost control and
continued strong consumer demand.
Puregold's consolidated net sales increased 2.1% year-over-year to Php 38.51 billion. After an
increase in Omicron cases and the lifting of travel restrictions in January 2022, sales are
gradually recovering. Gross profit was Php 7.7 billion, growing 6.8% year-over-year. On the
other hand, operating expenses of 4.95 billion pesos were capped at the growth of 5.51% over
the same period. Better product assortment for all customers.
The group will open its five new Puregold stores in the first quarter of 2022. As of the end of
March 2022, the Pure Gold Group has 504 stores nationwide. This includes 435 Puregold stores,
22 S&R member warehouses and 47 S&R New York style QSRs.
REFERENCES:

Retail Market in the Philippines Research Report Size , Growth, Trends,
Opportunity Analysis, Industry Forecast -2026 (technavio.com) (INDUSTRY
ANALYSIS OF RETAIL)

SM Supermarket vs Puregold: Which Supermarket is Better? (moneymax.ph)(SM
supermarket vs Puregold price club Inc.)

Puregold_AR2018_10.indd (S&R)

Strama.docx - PDFCOFFEE.COM (5 posters)

(DOC) STRATEGIC MANAGEMENT PAPER On PUREGOLD | Arantxa Stefi Leyva Santos
- Academia.edu(5 posters)

Puregold net income grew 18.9% to P 8.05 billion in FY 2020 (inquirer.net)
(2020 DATA)

Puregold earnings climb to P8.2 billion | Philstar.com (2021 DATA)

Press Release (pse.com.ph) (2022 DATA)