PriceSmart Announces Plans to Build Two New Warehouse Clubs in Guatemala and Jamaica
PriceSmart, Inc. (NASDAQ: PSMT) announced plans to construct new warehouse clubs in Guatemala City and Portmore, Jamaica, expected to open in fall 2021 and spring 2022, respectively. The company, which operates 47 clubs across 12 countries, aims to enhance its market presence following successful operations in Guatemala. Despite initial adverse impacts on comparable net merchandise sales from new openings, PriceSmart believes that this expansion will drive long-term growth through increased membership and sales. The developments follow land acquisitions in 2019 for both locations.
- Plans to open 48th and 49th warehouse clubs, enhancing market presence.
- The new club in Guatemala follows the successful opening of its fourth club there.
- Expansion expected to increase membership and net merchandise sales in the long run.
- New club openings may adversely impact comparable net merchandise sales initially.
SAN DIEGO, Dec. 17, 2020 /PRNewswire/ -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that it plans to proceed with the construction of its 48th warehouse club in Guatemala City, Guatemala, expected to open in the fall 2021, and its 49th warehouse club in Portmore, Jamaica, expected to open in spring of 2022.
In June 2019, the Company acquired nearly 150,000 square feet of land in Cayalá (Zone 5 municipality), southeast of Guatemala City, Guatemala, where it plans to build its fifth club in Guatemala. In September 2019, the Company acquired approximately 218,000 square feet of land in Portmore, a suburb west of the capital of Jamaica, where it plans to build its second club in Jamaica.
"Despite the roller coaster we rode with most of the world in this last year, we are ready to proceed with the construction of two new clubs, one each in Guatemala and Jamaica. We expect to open these clubs in the next fiscal year. The Cayalá Guatemala club, our fifth club in Guatemala, follows the successful opening and solid performance thus far of our fourth club opened in Guatemala last year. We also believe there is strong demand for expansion of our business model and warehouse clubs in Jamaica. As I've frequently mentioned before, new club openings are likely to initially adversely impact our comparable net merchandise sales. However, as we move forward with new club openings, as in this case, when we believe that in the long run, such expansion provides opportunities for growth by way of incremental membership, growth in net merchandise sales and services, and a better shopping experience for our members. Thanks to the incredible commitment of our employees, we are nearing the end of this calendar year excited about future possibilities," commented Sherry S. Bahrambeygui, CEO of PriceSmart, Inc.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 47 warehouse clubs in 12 countries and one U.S. territory (eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republic, four in Trinidad and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). The Company also plans to open new warehouse clubs in Cayalá, Guatemala and Portmore, Jamaica in the fall of 2021 and the spring of 2022, respectively. Once these two new clubs are open, the Company will operate 49 warehouse clubs.
This press release may contain forward-looking statements concerning the Company's anticipated future revenues and earnings, adequacy of future cash flows, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors, the outcome of tax proceedings and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: adverse changes in economic conditions in the Company's markets, natural disasters, compliance risks, volatility in currency exchange rates, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, breaches of security or privacy of member or business information, cost increases from product and service providers, interruption of supply chains, COVID-19 related factors and challenges, including among others, the duration of the pandemic, the unknown long-term economic impact, the impact of government policies and restrictions that have limited access for our Members, and shifts in demand away from discretionary or higher priced products to lower priced products, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law.
For further information, please contact Michael L. McCleary, EVP, Chief Financial Officer and Principal Accounting Officer (858) 404-8826 or send an email to ir@pricesmart.com.
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SOURCE PriceSmart, Inc.
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