Philippine Seven Corp., 7-Eleven’s operator in the country, said that it plans to build 412 new stores this year, spending PHP3.5bn (US$70m) to PHP4bn (US$80m) in capital expenditures in 2017.
10,000 stores in 10 years
Jose Victor Paterno, the company’s CEO, said that, out of 412 new store planned for 2017, half will be company-owned stores while the other half will be offered for franchise. The company will build 50 stores each in the Visayas and Mindanao, and the rest will be in Luzon, where most of its branches are still located.
The company earlier said to increase its branches to 10,000 in about eight years to 10 years by increasing an average of 25% annually.
Last year it added 410 stores to its network of now 2,000 branches, fewer than expected because building owners in Metro Manila started increasing their rates due to high demand from other convenience store operators.
Last year 7-Eleven Philippines made about PHP32bn(US$636m) in revenues, a 23% growth from the previous year. Entering the market in 1984, 7-Eleven Philippines remains a clear market leader in the convenience sector in the country, accounting for over half of the market share.
“The company plans to further accelerate the rate of new store openings, to take advantage of improving economic conditions and to protect our market share in light of increased competition. We believe that this sector will remain crowded, and we intend to capitalise on our first-mover advantage and economies of scale, to maintain our dominant position in the market,” the company said earlier.
The second largest convenience store chain in the country is Ministop with over 500 branches. Other competitors include FamilyMart, operated by Rustan’s, SM Retail’s own franchise of Alfamart, and home-grown brand All Day. There are about 4,000 convenient stores in the country, which includes those that are independently owned.
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