Chain targets 60 stores-A A +A
Saturday, February 15, 2014
PHILIPPINE Seven Corp. (PSC), the country licensee of global convenience store chain 7-Eleven, is gearing up for a rapid expansion in Cebu and targets to open 60 more stores this year on top of the existing 48.
The expansion, according to PSC business development specialist Raquel V. Maningas, is driven by the overwhelming response of the Cebu market to 7-Eleven, which, in 28 years time, had only penetrated Metro Manila.
The move is in line with its goal of increasing its presence in the Visayas and its entry in the Mindanao in the third quarter of this year.
PSC business development supervisor Marikudo V. Banico said the company has set aside P2 billion for its nationwide expansion.
“Our expansion now is going down South,” said Banico.
Over 1,000 nationwide
For Visayas, Maningas said the company is setting its eyes on opening more branches in Bacolod, which has 10 branches to date, and adding branches in Iloilo, which has only one branch now. 7-Eleven is also expanding in Panay Island and Dumaguete. At present,
PSC maintains a warehouse in Cebu.
In January this year, the company listed 1,018 branches nationwide. Of the number, the 7-Eleven branch on N. Bacalso Ave. in Cebu City is the top branch nationwide in terms of sales performance, listing more than P100,000 in daily sales.
Ranking next to it is a branch located in Metro Manila, while the third top sales performer is the 7-Eleven branch in Pueblo Verde in Mactan Economic Zone 2.
Maningas said that since 7-Eleven opened its first branch Cebu branch in Escario Central in 2012, the opening of more stores then grew, with most of them being franchised. Around eight percent of the total branches now are company-owned.
Cebu is 7-Eleven’s first inter-island expansion outside Metro Manila. Its partnership with Chevron Philippines, Inc. also enabled the convenience store chain to open more 7-Eleven stores in Caltex stations in Metro Cebu.
For its Mindanao expansion, which is eyed to start in Davao, Maningas said it will follow the same format as that of its expansion in Visayas, where it put up 7-Eleven stores in Caltex stations.
The franchise fee for 7-Eleven is at P3.5 million to P4 million inclusive of the building, merchandise and revolving fund.
Published in the Sun.Star Cebu newspaper on February 16, 2014.