The Philippine licensee for 7-Eleven convenience stores aims to build 10,000 stores nationwide in 10 years to sustain leadership in this 24/7 retailing segment while embracing new opportunities in e-commerce.
“We are expanding in Metro Manila, building even as everybody is building along with us. Our aim is to maintain our market share in Metro Manila and continue to expand in provinces,” Philippine Seven Corp. (PSC) president Victor Paterno told a briefing ahead of the retailer’s annual stockholders meeting yesterday.
PSC aims to grow both store network and revenue by about 25 percent a year, which will bring its nationwide network to 10,000 in 10 years, he said.
“The big story this year will be digital products,” Paterno said. After launching the store’s loyalty card in 2013, this program captures 25 percent of total sales with two million registered accounts.
A new application will be released by the company by September as PSC works with a number of digital payment solutions providers to “put together something very interesting,” Paterno said.
During the stockholders meeting, Paterno said financial technology was developing at a remarkable pace, presenting unique opportunities for convenience store (CVS) operators in unbanked markets, especially areas with significant remittance volumes.
“Click and collect e-commerce is another global trend that favors the CVS channels’ accessible locations and efficient logistics. In Taiwan, for example, 50 percent of e-commerce parcels are picked up at convenience stores,” he said.
On store expansion, Visayas and Mindanao are the areas where PSC expect to grow the fastest. The company has invested in warehousing facilities on these islands to facilitate the rollout of stores.
“Our view is that Metro Manila is getting increasingly crowded and with four players, it will be difficult to make money where everybody is,” he said.
PSC ended the first semester with 1,405 stores, expanding by 25.3 percent year-on-year. Franchised stores accounted for 61 percent of the total. By next year, it expects to breach the next milestone of 2,000 stores.