Puregold sells stores back to Lawson

Date : 27 April 2018

Puregold, which operates Lawson convenience stores in the Philippines, has agreed to return its 70% stake in the business back to its Japan-based partner, Lawson.

Uncertainty at Lawson in the Philippines

In 2014, Puregold partnered with Lawson to setup PG Lawson, which in turn operated Lawson convenience stores across the the Philippines. It had originally targeted 500 stores by 2020, but ended its most recent fiscal year (February 2018) with 33 Lawson stores. The divestment means that Puregold will rebalance its focus and resources on strengthening the Puregold brand. While financial details of the agreement have not been disclosed.

Our view

With Lawson focusing its attention on testing self-checkouts in Japan and accelerating its expansion in China (opening 420 stores in Shanghai, Chongqing, Dalian, Beijing and Wuhan in 2017), it will be interesting to see if it commits to further resources in the Philippines or pulls-out altogether.

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