PriceSmart (www.pricesmart.com), which began operations in 1994, is a public company trading under the symbol, PSMT. Based in San Diego, California, the company, which operates 41 locations in Latin America and the Caribbean, manages its business based on a traditional warehouse club philosophy.
PriceSmart offers its paid members low prices on a limited selection of nationally branded and private label merchandise (see picture on the right of Memberís Selection free and clear laundry detergent) within a wide range of product categories. Rapid inventory turnover, high sales volume and reduced operating costs enable PriceSmart to operate at lower gross margins than competing discount chains and supermarkets.
PriceSmart offers three annual memberships: business (approximately $30), consumer called diamond (approximately $35) and a premium membership called platinum (approximately $75 which includes a 2% rebate on most purchases). This white paper includes four sections: buying and merchandising, strategic vision, Aeropost, sales productivity and product registration, distribution and payment terms.