PHILIPPINE Seven Corp. (PSC), franchisee of 7-Eleven convenience stores in the Philippines, said on Wednesday it will spend P3.5 billion to open 412 stores this year after recently opening its 2,000th store in the country.
Its 2,000th outlet is located at the LV Locsin Building, 6752 Makati Avenue, Legaspi Village, Makati City.
PSC president and chief executive officer Jose Victor Paterno said majority of the new stores in 2017 will be located in Luzon, while 50 will be opened in the Visayas and another 50 in Mindanao. Half of the upcoming stores will be company owned while the other half will be franchised.
The P3.5 billion capital expenditure for 2017 is the same as its spending last year, which translated to 410 store openings.
Paterno said they still have the lion’s share of the market, attributing the continued growth to their strategy of moving toward the provinces.
“I think we’re right, we’ll stick to the provinces first because we have experience and we know the market. The sales of the others can’t support the high rents in the metro. If we cannot pay it, we won’t enter,” Paterno told reporters in Tagalog.
“If you look at their offering, it’s more upscale. But for us, we’re more broad-based, if you look at our prices,” he added.
The company expects continued sales growth this year after sales rose 23 percent to P32 billion in 2016.
Last year, they registered particularly strong sales because of the election spending in the first half, Paterno said.
The PSC president said they intend to grow more in Mindanao but they are still waiting for the peace process to be concluded in that region.
Industry-wide, Paterno said there is “still room for growth,” projecting that the overall number of convenience stores in the country may hit 15,000 or more in the next 10 years. At present, there are about 4,200 convenience stores all over the Philippines.
Other convenience stores present in the market are MiniStop of the Gokongweis, FamilyMart of the Ayala and SSI groups, All Day of the Villar group, Alfamart of the SM group, and other lesser known brands such as Circle K and Budget Mart.
PSC operates the leading 7-Eleven convenience stores in the Philippines since it acquired the license to operate from Southland Corp. (now Seven Eleven Inc.) of Dallas, Texas in December 1982. It was listed at the PSE on February 4, 1998.