Philseven to have 2,000 stores by 2016
May 31, 2023
July 30, 2015
By: James Loyola, July 30, 2015, Manila Bulletin
Philippine Seven Corporation (PSC), the local licensee for 7-Eleven Convenience Stores, is aiming to grow its nationwide store network by 25 percent a year and expects to hit 2,000 stores in 2016.
In an interview, PSC president Jose Victor Paterno said the aggressive expansion will be boosted by the firm’s recent entry into Mindanao where they plan to put up 60 stores this year consisting of 35 in Davao City and 25 in Cagayan de Oro City.
The firm has allotted P3 billion for capital expenditures this year for the improvement of existing stores as well as for the putting up of a total of 150 stores nationwide.
Paterno said they will continue to expand in Luzon where they currently have 1,250 stores, as well as in the Visayas which has 136 7-Eleven stores, including two in Boracay island.
He said about a third of the new stores this year will be put up in Luzon, leaving about 40 new stores for the Visayas.
PSC is confident it will maintain its leadership position in the convenience store sector as it expands presence while taking advantage of an improving Philippine economy.
During the firm’s annual stockholders’ meeting, PSC chairman Jose Pardo announced the continuation of company plans to expand 7-Eleven stores all over the country as the company takes advantage of its first-mover advantage and a large store-network’s economies of scale.
The company closed 2014 with 1,282 stores, an increase of 273 stores from end-2013’s 1,009.
“We opened the most number of new stores in our history in 2014. If you recall, it took us 12 years to open the first 100 stores in the Philippines, and another 14 years to reach the 500th store milestone by 2010. In contrast, PSC opened another 500 stores in a span of only 3 years, enabling us to surpass the 1,000th-store milestone in 2013,” said Pardo.
He added that “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.”
Pardo said “we believe that this sector will remain crowded, and we intend to capitalize on our first-mover advantage and economies of scale, to maintain our dominant position in the market.”
He noted that “this involves not only an increased pace of expansion in areas contested by competition, but strategic entry into new territories. It may not be profitable for the first few years due to the high fixed costs of logistics, but the company will later be rewarded.”