PriceSmart, Inc. (NASDAQ: PSMT) announced plans to proceed with the construction of its 48th warehouse club in Guatemala City, Guatemala which is expected to open in the fall 2021. Also, plans were announced for its 49th warehouse club in Portmore, Jamaica, expected to open in spring of 2022.
The company’s press release of December 17, 2020 states that 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.
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.”