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THE local operator of the 7-Eleven convenience store
chain plans to spend more than half a billion pesos to put up
hundreds of stores this year and next.
Jose Victor Paterno, Philippine
Seven Corp. president told reporters that the company is eyeing to
put up 150 stores until next year. The company plans to establish 70
stores this year and 80 stores next year.
Paterno said the new stores will
be located mostly in Metro Manila and in the Luzon area.
He added that each store costs
about P4.5 million.
“Our capex will be P300
million for this year and next,” Paterno told reporters following
the company’s stockholders’ meeting.
“We have to be aggressive next
year [in putting up more stores nationwide],” he added.
Paterno said of the total stores,
50 percent will be franchisee-operated and the remaining
company-owned.
The company began converting
existing corporate stores into franchise stores in 2005. Last year,
it converted 25 outlets, in addition to the 10 new franchise stores
it opened, bringing the number of franchise stores from 22 in 2005
to 57 last year.
“[The company] will be
converting 15 more in 2007, and will be opening 20 new franchise
outlets,” Vicente Paterno, the firm’s chairman said.
Currenly, 7-Eleven has a
total of 292 stores in Metro Manila and across Luzon.
The company chairman said the
conversion of stores meant the convenience chain was maturing to the
point it could entrust branches that it had built from the ground up
to partners who could carry on the 7-Eleven tradition of quality of
goods and services.
“In fact, the conversion of
company-owned stores made financial sense because it’s helping
build the [company’s] reputation as a franchisor who could offer
steady returns on capital,” he said.
Philippine Seven provides the
operating system, monitoring, supply logistics, marketing expertise,
advertising and promotions for the effective and profitable store
operations by the franchisees.
In the first quarter of the year,
the company’s revenue from merchandise sold reached P1.16 billion,
up 6 percent from P1.09 billion in the same period last year.
Average monthly sales per store,
grew by 6 percent owing to high sales of 7-Eleven core products like
Slurpee and Gulp.
--Darwin G. Amojelar
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