Philippine Seven Corporation (PSC), owner of the Seven-Eleven convenience stores (7-Eleven) in the country, is working out on some plans that would further reduce the outlets' operational spending.

Jose Victor Paterno, president and CEO of 7-Eleven, said the reduction in store operations outlay is one of their programs that would increase their profit.

Aside from trimming down their spendings in store operations, Paterno said they have also sought other measures by improving their “planograms.”

“We sought out ways to limit the spending in our store operations, improve planograms and proprietary cup drinks as well as take advantage of our POS Data in order to further enhance our store performance and ensure profit margins,” says Paterno during their annual stockholders meeting Friday.

Paterno made these announcements after the company posted a P20.14-million net income from store operations in 2006, which is 46-percent higher than the 2005 revenue.

According to Paterno, despite the consumers’ weak demand, the company was able to register good profit because of the promotional activities they have implemented to encourage consumers to spend.

“The 46-percent increase in net income last year was achieved by being pro-active in our operations. We introduced more varied merchandise and more exciting promos to induce more spending from our consumers,” he told reporters.

Asked what would be in the pipeline to sustain their profitability in the coming years, Paterno said they are set to open until the end of this year more stores in the country.

He said last year alone they opened 26 stores and PSC will continue its focus on franchising.

PSC also allocated P300 million capital expenditures for this year for the building and converting of stores.

“We are targeting at least 70 stores for this year,” he added

“We’re going to be more aggressive net year and we are looking for 80 stores,” he said.

Vicente Paterno, PSC chairman, said they are set to convert 15 more stores in 2007 and will be opening 20 new franchise outlets within the remaining six months.

At present 7-Eleven has a total of 292 stores operating in Metro Manila and several areas in Luzon.