PRICESMART INC

PriceSmart, Inc.

Company overview

• Founded in 1996 by Sol and Robert Price (founders of Price Club).
• Operates membership-based warehouse clubs in Central America, the Caribbean and South America, with expansion activities into Chile.
• Business model: membership-driven warehouse clubs offering high-value, low-cost merchandise to consumers and small businesses.

Global footprint and growth

• Total warehouse clubs: 58 (as of August 31, 2026).
• Market distribution (as of August 31, 2026):
  • Colombia: 10
  • Costa Rica: 10
  • Panama: 7
  • Guatemala: 7
  • Dominican Republic: 6
  • Trinidad: 4
  • El Salvador: 4
  • Honduras: 3
  • Nicaragua: 2
  • Aruba: 1
  • Barbados: 1
  • U.S. Virgin Islands: 1
  • Chile: 0 in operation (planning/land/agreements in process)
• Anticipated openings in Fiscal Year 2027: five new clubs (including one in Costa Rica, one in Guatemala and one in Chile). After four new club openings, the company projects a total of 63 clubs.
• Expansion activities include new club openings, remodeling, parking lot expansions and selective relocations (for example, Miraflores in Guatemala with relocation planned for 2028).

Members and customers

• Membership accounts: over 2 million.
• Cardholders: over 4 million.
• Typical membership types and pricing:
  • Diamond: annual fee about $40 (includes two cards).
  • Platinum: annual fee about $80 (includes two cards) with a 2% rebate on eligible purchases up to a $500 annual cap; rebate issued March 1 and expires August 31; unredeemed rebates become breakage revenue.
  • Business Members: annual fee about $40 (primary) or $80 (Business Platinum) with up to three additional cards; serves restaurants, hotels, offices, institutions and similar businesses.
• Membership revenue is recognized pro rata over the 12-month membership term.
• Deferred membership income: $50.6 million (Aug 31, 2026) versus $41.7 million (Aug 31, 2025).

Financial highlights (FY2026)

• Digital channel sales (PriceSmart.com and mobile app): $387.4 million, up 26.3% year over year.
• Digital channel sales as a share of net merchandise sales: 6.7%.
• Implied total net merchandise sales: approximately $5.78 billion.
• Private-label (“Member’s Selection”) share of merchandise sales: 26.9% (FY2026; 28.1% in FY2025).
• After excluding produce sold under the Member’s Selection brand in 2026, private-label sales as a percentage of NM sales increased by 20 basis points versus 2025.
• Platinum Members: 23.4% of the membership base (Aug 31, 2026).
• Optical locations: 55; pharmacy locations: 26 (as of Aug 31, 2026).
• Audiology services: discontinued in Q4 FY2026 and space reallocated to merchandise.
• Membership revenue represented about 1.8% of NM sales and 38.6% of operating income.

Products and services

• Core product category mix (approximate share of NM sales):
  • Consumables (groceries, cleaning, health & beauty): ~46%
  • Fresh Foods (meat, produce, deli, seafood, poultry): ~32%
  • Hardlines (electronics, appliances, automotive, hardware): ~11%
  • Softlines (clothing, domestics, home furnishings): ~6%
  • Food Service and Bakery: ~4%
  • Health Services (optical, pharmacy; audiology discontinued): ~1%
• Private-label merchandise is sold under the Member’s Selection brand and represents a significant portion of NM sales.

Digital, technology and operations

• Omnichannel offering includes home delivery and Click & Go curbside pickup; digital sales are a growing channel.
• Technology implementations and upgrades:
  • RELEX supply chain and inventory management platform implemented; U.S. vendor setup is substantially complete and in-country vendor setup and remaining components are in progress.
  • New point-of-sale system (Elera/Toshiba) implemented in Costa Rica; rollout in the Dominican Republic and other Central American and Colombian markets is underway.
  • Workday Human Capital Management (HCM): Phase 1 completed in Q1 FY2027.
  • E2Open global trade management: multi-phase rollout completed in FY2026.
  • Mobile app migrated toward native iOS and Android architectures to improve performance.
  • MOT (Membership Omnichannel Transformation): unified platform to consolidate member identity, transaction history and interactions across channels and geographies.
• Distribution and logistics footprint:
  • Miami distribution center operates within a Free Trade Zone.
  • San Jose, Costa Rica regional DC: 165,000 sq ft.
  • Panama City DC: 120,000 sq ft.
  • Trinidad DC: 92,000 sq ft.
  • Colombia DC opened FY2026: 96,000 sq ft.
  • China distribution centers opened in FY2026 to store and consolidate merchandise by country of destination to avoid U.S. tariffs.
  • Planned FY2027 additions: three PriceSmart-operated DCs in Jamaica and the Dominican Republic and a third-party DC in Chile; relocation/consolidation of Miami cold DC also planned.

People, culture and corporate responsibility

• Employees: over 13,000, with about 96% based outside the United States.
• Labor representation: approximately 1,800 employees are represented by labor unions.
• Talent and development: more than 230 corporate talent development sessions in FY2026, with over 8,800 participant engagements; programs include Women@PriceSmart and Women in Leadership Development.
• Community and philanthropy: PriceSmart Foundation supports education and youth workforce development, including programs such as Aprender y Crecer and vision screening and school supply initiatives serving hundreds of thousands of children.
• Employee engagement: town halls, local meetings and digital communications are used to align priorities and collect feedback.

Intellectual property, competition and risks

• Intellectual property protection includes trademarks, copyrights, trade secrets and confidentiality agreements with employees, consultants and suppliers.
• Competitive landscape: regional hypermarkets, supermarkets, cash-and-carry operators, electronics retailers and wholesale distributors. In markets served, competition includes Walmart (Central America), Grupo Éxito (Colombia), Cencosud (South America), and online platforms such as Amazon Global and Mercado Libre, as well as last-mile delivery services.
• Macroeconomic and operational risks include currency volatility, tariff and tax changes, geopolitical and environmental conditions, and supply chain disruptions.

Operational focus

• Market strategy emphasizes membership loyalty, low operating costs, large-pack SKUs and a curated merchandise mix to maximize efficiency and value.
• Company priorities include expanding in existing markets, entering new markets, remodeling clubs, improving curbside and digital capabilities, and reallocating space to merchandise where service lines (such as audiology) have been discontinued.

Summary takeaway

PriceSmart operates membership-based warehouse clubs across Central America, the Caribbean and Colombia, with Chile in the expansion pipeline. As of August 31, 2026, the company operated 58 clubs, served over 2 million members with more than 4 million cardholders, and generated $387.4 million in digital sales (6.7% of NM sales) in FY2026. Private-label Member’s Selection accounted for 26.9% of NM sales. The company is expanding its club and distribution network, investing in supply chain and retail technology, and maintaining a workforce of over 13,000 employees while supporting community and youth education initiatives through its foundation.