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7-Eleven to Open 80 Stores in ’09
Jul 17, 2009 Business
Philippine Daily Inquirer
Daxim Lucas |
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LISTED FIRM PHILIPPINE SEVEN Corp. expects to sustain its growth for the rest of 2009 despite the challenging economic environment and the rising competition from expanding supermarket chains.
During the company’s annual stockholders’ meeting yesterday, the local franchise holder for the 7-Eleven convenience store brand said it would expand its network by opening 80 outlets this year.
“In common with most companies in the Philippines, we keep cautious watch on how the economy will fare this year in the context of the global crisis,” PSC president Jose Victor P. Paterno said.
He said the average store sales have so far been maintained at last year’s levels, despite the widely expected decline in consumer spending.
Of the total number of stores that will be opened this year, about half will be under franchise agreements. Overall, franchised stores account for 55 percent of the company’s total outlets.
PSC opened its 400th outlet the other day, Paterno said, after ending 2008 with 368 branches—57 more than the 311 branches in 2007.
It costs about P5 million to set up one 7-Eleven outlet, which, on the average, brings in P50,000 in sales per day.
Paterno expressed optimism in the continued growth of the business process outsourcing industry in the country, many of which provide 7-Eleven with a steady stream of business due to the round-the-clock nature of their operations.
PCS earned P94.27 million in 2008, up from the P54.83 million of the previous year, owing to expansion activities.
It registered P6.24 billion in sales last year, compared to P5.55 billion in 2007.
To cope with the difficult environment, Paterno said management had prepared “alternative approaches” in promotions, product mix and pricing to ensure sustained sales.
“We are optimistic that our institutional experience, over the 27 years since our store first opened, stands our company in good stead not just to cope but to preserve profitability in uncertain times,” he said. | |
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