LEADING local convenience store operator Philippine Seven Corp. grew its net profit in the first six months by 32.5 percent year-on-year to P472.3 million as election spending boosted retail sales alongside an expansion in its store network.
For this year, PSC plans to raise its capital expenditure budget to P3.5 billion from last year’s P3-billion allotment, to further support its store expansion strategy amid stiffer competition.
The local licensee of 7-Eleven convenience stores ended June with 1,740 stores, rising by 23.8 percent year-on-year. Of the total network, the biggest number is still in Luzon at 1,474 while 203 stores are in Visayas and 63 in Mindanao.
Franchisees control 57 percent of total stores while 43 percent are corporate-owned.
Retail sales of all stores reached P15.5 billion, up by 27.2 percent compared with the level set last year. Same store sales went up by mid-single digit during the period.
“The company is set to attain another milestone this year in terms of store count and profitability,” PSC said.
Bulk of the P3.5 billion capital spending for the year is allocated to new store opening, store renovation and equipment acquisition.
“While competition is likely to be more intense, PSC is the most capable to strengthen its position
in the convenience store sector. It aims to capitalize on its first-mover advantage and intends to
benefit from the capacity-building expenditures over the last three years. It believes that the
market will continue to grow as it enables the organization in achieving new heights,” it said.
PSC operates the largest convenience store network in the country. It acquired from Southland Corp. (now Seven Eleven Inc.) of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 1982. It debuted on the Philippine Stock Exchange on 1998./rga