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Foreign exchange fluctuations affect PriceSmart

 PriceSmart, Inc. which is headquartered in San Diego and owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, has announced that for the month of August 2019, net merchandise sales increased 4.5 per cent to US $259.9 million, from US$248.8 million in August last year. 

A PriceSmart in Bogota, Colombia. (Photo: CNBC)

However, the company in a release on the results said that foreign currency exchange rate fluctuations impacted net merchandise sales negatively by US$6.5 million or 2.5 per cent versus the same prior year one-month period. 

For the twelve months ended August 31, 2019, net merchandise sales increased 1.2 per cent to US $3,091.3 million from US $3,053.8 million for the twelve months ended August 31, 2018. 

PriceSmart plans to open warehouse clubs in San Cristobal, Guatemala and Panama City, Panama, in the fall of 2019. 

Foreign currency exchange rate fluctuations impacted net merchandise sales negatively by $97.6 million or 3.2 per cent versus the same prior year twelve-month period, PriceSmart said in its release. 

There were 43 warehouse clubs in operation at the end of August 2019 and 41 warehouse clubs in operation at the end of August 2018.

PriceSmart, focuses on selling high quality merchandise at low prices to PriceSmart members.

” PriceSmart is also planning to build a new warehouse club in Liberia, Costa Rica, and Bogota, Colombia and open them in the summer and fall of 2020, respectively.”

The company release indicated that for the fifty-two week period ended September 1, 2019, comparable warehouse sales decreased 0.6%, compared to the comparable fifty-two week period a year ago. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales negatively by $96.0 million or 3.2 per cent versus the same period last year. 

The store  operates 43 warehouse clubs in 12 countries and one U.S. territory (seven each in Colombia and Costa Rica; six in Panama; five in the Dominican Republic, four in Trinidad; three each in Guatemala and Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands). 

With the openings, PriceSmart will operate 47 warehouse clubs. (videoblocks.com)

PriceSmart is currently constructing and plans to open warehouse clubs in San Cristobal, Guatemala and Panama City, Panama, in the fall of 2019. 

The company says it is also planning to build a new warehouse club in Liberia, Costa Rica, and Bogota, Colombia and open them in the summer and fall of 2020, respectively. 

With these new clubs are open, PriceSmart will operate 47 warehouse clubs.