Philippine Seven Corp., the local franchise holder of convenience store giant 7-Eleven, said the company is shifting its focus on expanding same store sales to boost profitability after opening 2,000 outlets.
PSC president and chief executive Jose Victor Paterno said in an interview at the sidelines of the annual stockholders’ meeting that while company was still poised to open 400 outlets this year, it aimed to increase same store sales growth to a high single-digit from the current low single-digit level.
“We now turn our attention to growing same store sales, which we must admit has been lackluster in comparison to international peers over our history as a company,” Paterno said.
He said the company would focus on improving services and expanding product offerings to improve same store sales growth.
Out of the 400 stores slated to open this year, half will be located in Visayas and Mindanao, which are the fastest-growing markets for the company.
Paterno said there were still opportunities to open more stores in Metro Manila.
The company also plans to start offering some of its corporate stores for franchising for a minimal investment of P300,000, depending on the size of the outlet.
The company has initially offered the plan to existing franchisees and employees that resulted in the conversion of 50 corporate stores into franchise outlets.
Paterno said the company was still offering the plan to other investors, provided they were willing to work in the stores.
The strategy is based on the franchise models in other countries.
“It is intended for franchisees with limited capital but with skill and will to manage stores themselves. We will be converting stores with established sales history, applying a fixed gross profit split that varies depending on sales growth and expense control within the franchisees’ sphere of influence,” Paterno said.
The convenience store chain, meanwhile, plans to launch a new e-commerce service this year. 7-Eleven stores under the arrangement can be used a payment and pick sites for various packages.