The country’s largest convenience store chain, 7-Eleven Philippines, talks about its excellent performance for the year 2010 as they hold their Annual Stockholder’s Meeting this July. The Philippine Seven Corporation (PSC), licensee of the global 7-Eleven brand, fresh out of opening its 600th store this month, continues to work toward its goal of opening 1000 stores by 2013.
The circumstances were in PSC’s favor in 2010 as the economy grew by 7.6% last year. A boost in spending thanks to the Presidential elections, as well as the good weather contributed to the improved performance of the company.
PSC posted an increase of 78% in net income for the past year.
“Results indicate that we are headed in the right direction. Operating margins compare favorably even with larger convenience store peers, and we believe we have made substantial progress towards our vision of being the best retailer of convenience for emerging markets. And while we continue to improve our operating model, we are also more comfortable that its foundation is sound, and look to scaling it up more aggressively in the coming years.” said Jose Victor Paterno, President and CEO of PSC.
Among the steps undertaken by 7-Eleven recently were to grow their number of stores. The company successfully opened 111 stores for the year 2010 and is planning to have another 150 open by the end of 2011.
The store chain also improved on their product lines and came up with innovative new products, such as fried chicken and soft serve ice cream. Ground-breaking promotions also generated interest and boosted sales. Most notably, there was the 7-Elections campaign, the highly successful informal polling promotion, where customers could ‘vote’ by buying Gulp Cups with the corresponding image and colors of the Presidential candidates. The promo did not just bring sales, but was also awarded the rare and prestigious Gintong Haligi, by the Advertising Foundation of the Philippines.
7-Eleven Philippines has also made its presence felt in social media, coming in at over 270,000 likes on Facebook, the 2nd largest among Philippine retailers. Through these platforms, 7-Eleven has been able to tap into this market by announcing hourly promos to its fans.
These measures, as well as the favorable environment of the past year, have all led sales revenues to grow by 26% from the past year, generating PhP7.61 Billion in revenues. Net profits for 2010 were posted at PhP 277 Million, up by 78% from the P156M in 2009.
While the year 2011 poses its own set of challenges, PSC is equal to the task. It looks forward to expanding its operations and opening more stores in the years to come.
Philippine Seven Corporation is the country licensee of 7-Eleven global brand. Among its awards are Entrepreneur Magazine’s Franchise Awards Hall of Fame (2011), Best Foreign Franchise, Fastest Growing Franchise and Best in Franchising Support (2010). PSC has also been awarded by the Philippine Franchise Association (PFA) as the International Franchise of the Year thrice in a row.