2010 marks a new beginning for our country – and not just because of the new administration. The year also heralds significant milestones in the history of one of the most esteemed names in the retail industry–7-Eleven. Not only has the company kept afloat amid the economic crisis, 7-Eleven has also managed to expand its franchises and introduce new products and services, all of which have further cemented the store’s reputation as the country’s favorite and most reliable convenience store chain.
Weathering the Global Storm
2009 has definitely been a difficult year, not only for local businesses, but also for entrepreneurs and franchises all over the world because of the huge dip in consumer spending due to the global recession. However, it was a storm that 7-Eleven Philippines has effectively weathered by adopting a two-pronged strategy– to ensure relevance within the market, the company endeavored to reduce prices on general merchandise and popular products while dovetailing with efforts to emphasize the quality and value of the brand’s proprietary food service products. At a time where value for money and convenience were at the forefront of the Filipino consumer’s buying priorities, this provided 7-Eleven an opportunity to stay competitive despite the shifting retail landscape.
Growing in Numbers and Profit
All these efforts have resulted in a record of 90 new stores opened during 2009, with 7-Eleven franchises growing to almost 60% share in the last year. The company’s strategic partnership with Chevron has also contributed greatly to the success of 7-Eleven in the past year. Several StarMart convenience outlets located in Caltex gasoline stations were converted into 7-Eleven stores, increasing profitability for both 7-Eleven and Chevron.
All these have led to system-wide revenues of over PhP 7 Billion in 2009, a 13% increase over the previous year. Efficient operations and increasing economies of scale further leveraged this revenue increase into an 85% net profit growth—from PhP 84.5 million in 2008 to Php 155.8 million in 2009.
An Optimistic Year Ahead
The overwhelming positive customer response during the preceding years has prompted 7-Eleven to further enhance their two-pronged strategy, with the intent of serving a broader range of customers. The company also plans to be more aggressive in their franchising initiatives. Already, the 7-Eleven name has become synonymous with sound investments” and entrepreneurship in the country.
With the expansion and successful business strategies that have helped 7-Eleven push ahead despite the adversities that have affected this country and the world in the past years, the year 2010 looks like an even better and brighter year for the company.