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7-Eleven to Remain in Luzon
Jul 16, 2009 Corporate News
Business World Online
Don Gil K. Carreon |
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PHILIPPINE SEVEN Corp., the local licensee of convenience store chain 7-Eleven, will be staying in Luzon for the meantime, as the country’s archipelagic nature continues to pose logistics challenges to the firm’s expansion.
In a briefing yesterday, Jose Victor P. Paterno, president and chief executive of Philippine Seven, said that while the company wants to expand in Visayas and Mindanao, the firm has yet to figure out how to deliver products there.
"No licensee is faced with this situation, where people are spread out on so many islands... I hope [we can do it] in the next five years but we still need to do a study first," he said, adding that the company would have to open warehouses in those areas first.
Mr. Paterno also ruled out tying up with local investors in Visayas and Mindanao saying Philippine Seven’s license bars such deals.
The Luzon expansion of the company — which opened its 400th branch in Cubao yesterday — would, however, continue with 50 more stores scheduled to open by yearend, bringing the total to 450.
Most of the stores, which cost P4 million each will be in Metro Manila. Half will be franchisees. Fifty more are scheduled to open by the third or fourth quarter of 2010, but the company has already identified 84 sites.
The chain, whose southernmost store is in Lucena, Quezon, said in a statement it would like to broaden its reach to Bicol, Pampanga, La Union, Zambales, and the Ilocos region.
In the first quarter, Philippine Seven’s earnings reached P13.27 million, up from P5.58 million last year, after revenues grew by 12.41% to P1.63 billion. | |
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