Philippine Seven Corporation (PSC) signed a purchase agreement with Jollimart Philippines Corporation last March 22, 2004, transferring ownership of 35 Binggo store outlets. The purchase amounted to P130 million consisting of leasehold rights, building and improvements, and store equipment.
According to Yeong Hsiang Yeh, PSC President, “The transaction is a win-win arrangement for both parties. It is a fact that convenience store retailers with greater store numbers have a better chance of survival in the Philippine market. For 7-Eleven, the acquisition of the 35 more stores enables us to increase earnings. We will also benefit from a number of Binggo’s good store locations. With the increased store number, we can more fully utilize our infrastructure and logistic support systems that we have been building these past three years.”
Some projects undertaken in the last 2 years improved 7-Eleven’s operating systems and raised store productivity. These were the Efficient Ordering and Distribution System (EODS), New Accounting Information System (NAIS), a new logistic system (CA Super Logistic) at Convenience Distribution Inc., and the Value Added Network (VAN).
In the recent celebration of 7-Eleven’s 204th Store Opening last March 17, James Hsieh, Vice-President of President Chain Store Corp. (PCSC) recognized the large opportunities in the Philippines’ CVS market and reiterated PCSC’s pledge to continue supporting Philippine Seven Corporation by sharing their expertise in technology and systems improvement. This deal shows the willingness of PCSC to increase its financial commitment to further enhance PSC’s leadership in the convenience store industry.
7-Eleven will convert the Binggo stores and make them fully operational by May 2004. With the additional stores, 7-Eleven boosts its current store number to 239, which represents 71% of the total convenience store market. PSC expects to have 260 stores in operation by the end of 2004.
The picture shows the conclusion of the purchase transaction with the exchange of documents between PSC and Jollimart.
Shown from left during the exchange are Teddy Wenceslao (PSC Development Division Manager), Yeong Hsiang Yeh (PSC President), Vicente Paterno (PSC Chairman), and Eduardo Paredes and Atty. Arthur Sy for Jollimart and Atty. Evelyn Enriquez (PSC Corporate Secretary).
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