Sunday, 1 August 2010

Philippine Seven bullish, to open 500 more outlets

by Jenniffer B. Austria
Manila Standard

Philippine Seven Corp., the local franchise holder of global chain store 7-Eleven, is investing P2.5 billion to put up 500 more stores over the next three years.

Philippine Seven president Joseph Victor Paterno told reporters during the opening of its 500th store in the country that the company aimed to put up 1,000 stores over the same period.

One store requires P5 million of investment on the average.

The company aims to open 100 stores and another 130 in 2011, either company-owned or franchised outlets.

About 60 percent of the 500 existing stores are franchised while 40 percent are company-owned in contrast with other countries. Around 85 percent of 7-Eleven stores in Taiwan are franchised stores while as much as 98 percent in Japan are not company-owned.

“We want to increase the number of franchise stores because they are better taken cared of,” Paterno said.

He said the company’s expansion would be mainly in Luzon because of less distribution problems.

Philippine Seven reported a net income of P155.8 million in 2009, up 85 percent from P84.5 million in 2008, due to efficient operations and an increase in economies of scale.

Systemwide revenues totaled P7 billion, up 13 percent from the 2008 level.

“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,” Philippine Seven said.

Share price of Philippine Seven rose to P15 Friday from P14 on July 21.

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