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PriceSmart has received approvals to build its third membership shopping outlet in Jamaica, amid growing local sales at double the Caribbean rate.
The membership shopping club received planning permission and an environmental permit in mid-February for the “construction and operation of commercial development” at Ironshore, Montego Bay. The approvals from were granted to its construction arm, PriceSmart Realty Jamaica Limited.
PriceSmart, an American company, currently operates at two locations in Kingston and Portmore, amid more than 50 stores in its international network.
In 2020, PriceSmart received approval from the National Environment & Planning Agency, NEPA, for the construction of a commercial complex in Montego Bay. The initial plan was to build in Catherine Hall, located on the other side of the city, but that was disrupted by the COVID-19 pandemic. That location would have placed the PriceSmart club close to competitors such as MegaMart shopping warehouse, Progressive Foods supermarket, and Fontana pharmacy.
PriceSmart currently operates a bakery in that same area, at Bogue City Centre.
A year ago, media reports resurfaced indicating that PriceSmart was planning a warehouse in the city, but this time shifting towards Ironshore, while seeking parish council approval. Sources indicated that preliminary work had started on the land, which previously housed a golf course.
On Tuesday, the Jamaica Chamber of Commerce, JCC, expressed its support for PriceSmart’s planned expansion in Jamaica. JCC President Phillip Ramson said the retail chain has not only benefited “thousands of individual Jamaican consumers” but also “helped hundreds of small businesses” to source products for their own clientèle through its bulk purchasing model and competitive pricing.
“It has contributed to the bottom line of many small retailers and convenience stores, restaurants and food service businesses, small wholesalers and distributors, corporate business offices, non-profits and schools, as well as enterprises in service-based and hospitality industries,” Ramson told the Financial Gleaner.
PriceSmart, which entered Jamaica in 2002, is a member of the JCC.
The chain headquartered in San Diego, California operates 54 stores across 12 countries, primarily in Latin America and the Caribbean. It plans to add two more locations this year, one in Costa Rica in April and another in Guatemala in the summer. The company made no mention of expansion plans in Montego Bay in its latest filings.
“This past year, we made major investments in Liberia, Costa Rica; San Pedro Sula, Honduras; San Salvador, El Salvador; Santiago, Dominican Republic; and Portmore, Jamaica,” said interim CEO Robert Price in his letter to shareholders in the company’s 2024 annual report. “In addition, we have other potential sites under consideration but do not announce new locations until all permits have been received,” he said.
PriceSmart did not immediately reply to a request for comment on its plans.
In the report, PriceSmart indicated that the Caribbean sales grew by six per cent, with Jamaica up twice that amount.
“Our Jamaica market continued its strong performance in the 52-week period, with 12.2 per cent comparable net merchandise sales growth,” stated the annual report for the year ending August 2024.
The annual report did not disaggregate the spend in Jamaica but the Caribbean generated US$1.3 billion of the group’s US$4.8 billion in annual sales.
The expansion in Montego Bay aligns with PriceSmart’s broader strategy to grow its footprint in the Caribbean and other regions. This week, PriceSmart announced that Robert Price would assume the position of executive chairman later in August and David Price would take over as CEO at the start of the new financial year on September 1.
David Price is Robert Price’s son, the company said in a press release.
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