Philippine supermarket operator Puregold Price Club Inc said on Friday it has signed a deal with Japanese retailer Lawson Inc to establish a chain of convenience stores in the Philippines.
Puregold, one of the country's three biggest supermarket firms, said in a filing to Manila's stock exchange that has agreed to take a 70 percent interest in a joint venture, with Lawson taking the remainder. It disclosed neither financial terms of the deal nor a target for new store openings.
The deal steps up competition in an already crowded convenience store industry in the Philippines, seen as attractive as consumer spending tracks upwards in line with economic growth.
The new firm will compete with the 7-Eleven stores operated by Philippine Seven Corp, Mini-Stop outlets operated by the Gokongwei Group, and a FamilyMart chain operated by Ayala Land Inc in partnership with the Rustan's Group and Japan's Itochu Corp.
The deal with PureGold, which had 213 supermarket outlets at the end of 2013, will expand Lawson's international presence, which includes outlets in China, Thailand, Indonesia and Hawaii. Last month, the Philippine Star newspaper reported Lawson was looking to open as many as 2,000 outlets in the Philippines in partnership with an unidentified local partner.
Puregold, which has said it intends to open 25 new supermarkets this year, competes in the supermarket business mainly with SM Prime Holdings Inc and Robinsons Retail Holdings Inc.
Shares of Puregold ended Friday's trading up 0.84 percent in a market that slipped 0.36 percent. Puregold has gained nearly 11 percent so far this year.
