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.