7-Eleven sees higher sales, adds 50 stores
abs-cbnNEWS.com | 07/06/2009 7:22 PM
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MANILA - The local operator of the 7-Eleven chain in the Philippines is expecting higher sales amid stiff competition from other convenience stores as it plans to add 50 more stores this year.
According to Philippine Seven Corp. Chairman Vicente Paterno, the company is expecting system-wide sales to rise by 15 percent this year from last year's 12-percent growth at P6.24 billion.
On top of this, Philippine Seven is planning to put up 50 more stores this year, further consolidating its position as the country's biggest convenience store chain with a 25-percent market share.
Franchises account for 60 percent of 7-Eleven's 400 convenience stores in the country. Philippine Seven is planning to increase this share to 65 percent by the end of the year as it puts up more outlets.
Paterno admitted that the company has been affected by the entry of more 24-hour stores this year. Despite this, he said 7-Eleven's sales have improved for the last three years, not citing figures.
Some of 7-11's competitors include convenience store Mini Stop, Mercury Drug, and 24-hour stores in gasoline stations.
Mini Stop, which is operated by Gokongwei-led Robinsons Convenience Stores Inc. (RCSI), already has 35 stores under construction to add to its current 250 outlets. RCSI said it is planning to open 100 stores annually as it aims to be the leading convenience store player in the country.
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