Philippine Seven Corp. (PSC), the local licensee of global convenience store chain 7-Eleven, is setting its eyes on 25-percent annual store growth to protect its market share from the increasing number of convenience store-chain brands in the country.
Going forward, the company aims to increase its annual store growth rate to 25 percent, which would double its store count every three years, PSC President and Chief Executive Officer Jose Victor Paterno told stockholders at the annual meeting on Tuesday.
“A store expansion rate of 25 percent is currently a best guess, and [is]likely to change in response to conditions and unknowns. What will remain unchanged is the determination to protect market share,” Paterno said.
Currently, the market share of 7-Eleven in the chained convenience stores category is estimated at 60 percent.
The company’s rivals in the said category are MiniStop, which is part of the Gokongwei family’s retail firm Robinsons Retail Holdings Inc.; and Japan’s Family Mart, which was brought into the country by Ayala Corp. last year.
Meanwhile, included in the pipeline of global convenience store brands to join the local scene is Lawson convenience store, which will be brought in by the Lucio Co-led Puregold Price Club, Inc., while the Henry Sy-led SM Group is mulling over a move to bring Indonesia’s top convenient store brand Alfamart into the country.
In 2013, PSC opened a total of 180 stores, ending the year with 1,009 stores, resulting in a 22-percent expansion in the firm’s store base.
PSC ended the first semester of this year with 1,121 stores, 25.5 percent more than that of the same period last year.
During the second quarter, PSC saw its net income growing by 24.6 percent year-on-year to P224 million. In the first half, PSC posted a 9.4 percent year-on-year increase in net profit to P323.9 million.