PriceSmart Inc will open its 60th warehouse club along South Camp Road in Kingston this December, continuing a major investment drive in Jamaica that has seen the retailer commit more than US$55 million to two new stores, alongside upgrades to its distribution network.

The South Camp Road club, developed at a cost of US$27.6 million, will become the company’s fourth Jamaican location and its second in Kingston, joining the Red Hills Road outlet which opened in February 2003. PriceSmart’s Jamaican subsidiary will lease the land from South Camp Fourteen Limited under a 30-year agreement.

The upcoming opening follows the recent launch of PriceSmart’s third Jamaican store on Sugar Mill Road in Montego Bay, where the company invested more than US$28 million in a 67,300-square-foot facility, including 43,500 square feet of sales space and parking for 277 vehicles. The development also created 182 direct jobs.

“We built it with sustainability in mind, including LED lighting, a CO2-based cooling system, and its own wastewater treatment plant. It’s still early, but we’re encouraged by the initial reception from members in the area,” PriceSmart Chief Executive Officer David Price said during the company’s October 27 earnings call.

The investments are accompanied by improvements to the retailer’s distribution infrastructure as it builds capacity to support its growing Jamaican network.

At the September 30 opening ceremony in Montego Bay, Rodrigo Calvo, PriceSmart’s executive vice-president of real estate, disclosed that the company had invested US$5 million in a central bakery facility in 2025 and was preparing to open a new distribution centre in the coming months.

PriceSmart’s Jamaican operations have since taken over the former Nestlé distribution complex at Ferry Pen, St Catherine, for the planned facility, which will support its expanding local operations.

Jamaica has emerged as one of PriceSmart’s stronger Caribbean markets, recording the highest net merchandise sales growth in the company’s August 2025, 2024, 2020 and 2019 financial years. Although the retailer did not identify a single leading market for 2026, it reported positive sales growth across all its markets except the US Virgin Islands.

The expansion has been particularly pronounced since 2022, when PriceSmart opened its second Jamaican club at Braeton Parkway in Portmore, followed by an enlargement of that location’s sales floor.

With the South Camp Road opening, Jamaica will have four PriceSmart clubs, matching Trinidad and Tobago’s presence, while the Dominican Republic remains the company’s largest Caribbean market with six locations.

PriceSmart has also been tapping Jamaica’s capital market to finance its regional investments.

Its Jamaican subsidiary recently executed a private placement to raise J$1.5 billion through a senior secured bond to support the development of the two new Jamaican clubs. Further details of the transaction are expected in January, when the company publishes its first-quarter financial report.

PriceSmart Jamaica also entered into a US$14.25-million cross-currency swap with PSMT Trinidad/Tobago Limited on August 31, facilitated by Citibank, NA.

The transaction follows borrowing of US$44.5 million by PriceSmart’s Trinidadian subsidiaries through the Jamaican capital market during the 2025 financial year. Those funds were used to support the construction of a distribution centre and settle intercompany payables.

The investments come as PriceSmart’s Caribbean operations continue to deliver improved earnings, supported by stronger sales across several markets and the addition of another warehouse club.

Revenue for the Caribbean segment increased seven per cent to US$1.54 billion in the financial year ended August 2026, while operating profit rose nine per cent to US$96.86 million. Net profit improved five per cent to US$68.60 million.

The segment’s asset base also expanded 18 per cent to US$631.03 million, reflecting continued investment in its operations, with capital expenditure on property, plant and equipment totalling US$88.41 million.

PriceSmart does not separately disclose financial results for Jamaica, making it difficult to determine the country’s individual contribution to the segment’s earnings. However, the pace of investment and the addition of two clubs within a short period shows the importance of the local market to the retailer’s regional expansion.

Across its operations, PriceSmart reported an 11 per cent increase in consolidated revenue to US$5.88 billion for the 2026 financial year, while membership income climbed 18 per cent to US$100.79 million, supported by growth in membership accounts in Central America.

Operating profit rose 13 per cent to US$261.02 million, while consolidated net profit improved by a similar margin to US$166.59 million. Earnings per share reached US$5.40.

The company also ended the year on a stronger note, reporting fourth-quarter revenue of US$1.52 billion, ahead of analysts’ expectations of US$1.44 billion. Quarterly net profit climbed 19 per cent to US$37.6 million, although earnings per share of US$1.21 fell short of the US$1.26 analysts had projected.

Despite its continued expansion, PriceSmart remains cautious about external pressures that could increase operating expenses and the cost of goods sold across its markets.

Management has identified rising fuel, freight and food costs among its principal concerns, particularly as global shipping disruptions and adverse weather conditions threaten supply chains.

“The risks we are watching are increasingly interconnected rather than tied to a single country. The scenario we are most focused on is a combination of higher fuel, freight, and food costs. US diesel prices have reached record levels. A very strong El Niño is forecasted through the winter, and global ocean shipping schedules have been unreliable,” Price said.