MANILA – Philippine Seven Corp.(PSC), the local licensee for 7-Eleven, plans to open over 300 new stores across the country this year, optimistic about the prospects of the convenience store format and an improving economy.
In a press briefing, PSC president Jose Pardo said the company aims to grow its store network by 25 percent a year and hit 1,600 by yearend from 1,282 stores in 2014.
With the target growth, its store network is expected to reach 10,000 in 10 years, he said.
“PSC plans to further accelerate the rate of new store openings, to take advantage of improving economic conditions and to protect our market share in light of increased competition… We are maintaining market share in Metro Manila and continue expanding in the provinces,” he said.
Pardo said the company is opening more stores this year especially in Visayas and Mindanao in its bid to maintain leadership in the convenience store sector.
This year, PSC went south and set up four 7-Eleven stores in Davao and Cagayan de Oro in Mindanao. Two stores were also opened in Boracay Island in Aklan in the first half of the year.
To support its store expansion program, Pardo said the company will be operating 10 warehouses by yearend throughout Luzon, Mindanao and three islands in the Visayas against four in mid-2014.
Those in Visayas and Mindanao are located in Cebu, Bacolod, Iloilo, Davao and Cagayan de Oro.
Lawrence de Leon, PSC’s head of finance and accounting, said of the company’s P3-billion capital expenditure program this year, one-third will be spent within Metro Manila.
De Leon said the remaining P2 billion will be earmarked for Luzon and the Visayas and Mindanao regions.
The company has allotted the capital spending for new store opening, store renovation and warehouse expansion.
PSC earlier reported a 10.1-percent increase in profit to P356.5 million for the first half of the year.
“(The) PSC has been expanding its logistics infrastructure to support its unprecedented expansion in Visayas and Mindanao,” it said.
PSC’s consolidated revenues reached P10.13 billion in the first semester, up 26.8 percent from the prior year’s P7.99 billion.