7-Eleven to open 412 new stores this year, allots P4 billion for nationwide expansion

Aiming to tap more business growth prospects in various regional markets in the country, world-renowned convenience store chain giant 7-Eleven announces its aggressive expansion campaign with the opening of 412 new stores across the country this year.

Banking on the Philippines’s continued performance as one of the countries with highest growth in Asia, Philippine Seven Corp. (PSC), the listed local franchise holder of 7-Eleven, is optimistic the positive outlook will lead to the achievement of its expansion goal in 2017. The company is set to open a total of 262 stores in Luzon, 138 of which will be opening soon in Metro Manila and 124 outlets in provincial areas. Another 150 branches will be opening in the Visayas and Mindanao.

According to PSC Business Development Unit Head Francis Medina, the move shows 7-Eleven’s firm stand to maintain undisputed leadership in terms of market share in highly competed territories.  PSC is eyeing to penetrate new territories, and is aggressively seeking franchise partners in these areas. Offered in flexible options, potential partners can avail of Regular New Store Franchise (open a new 7-Eleven store) or Property Conversion (convert an established business or property into a 7-Eleven franchise).

7-Eleven’s franchise package offers suitable franchise partners a unique opportunity to benefit from a proven system and ongoing support. Apart from one-month preparatory training, partners are lent with assistance, especially at the first crucial stages of operational transition, from supervising, basic Human Resources coaching, to sales monitoring.

In line with the expansion is the rolling out of the new store of the future designs wherein the concepts will vary and depend on the store’s locations and cluster.

According to PSC Finance Department Head Lawrence de Leon, this year’s expansion program will cost the PSC P4 billion. Last year PSC has allotted P3.5 billion for capital spending, up from P3 billion in 2015, to fund new store openings, store renovations and equipment acquisitions.

“7-Eleven’s increased budget is a timely development that not only defensively secures our foothold in the country, but one that will also pave the way for more job creations and provide businesses in the areas, benefiting the people where the stores will be built,” de Leon said.

Increased marketing activities and improvisations in the product and service portfolio also account for 7-Eleven’s continued growth. PSC’s major partnership deals with prominent groups like Caltex-Chevron and LTS Supermarkets Inc. also resulted in a broadened, more profitable and competitive franchise retail format for 7-Eleven.

In light of rising market competition from new and incumbent players, PSC is very much confident it will remain the most trusted franchise business of choice among potential Filipino partners, and the solo leader in the convenience store category.

Medina added PSC is expecting to end the year with 2,347 stores nationwide compared to last year’s figure of 1,996—an 18-percent increase in nationwide count.

PSC currently operates 920 corporate stores and 1,121 franchise outlets. For franchising inquiry, e-mail [email protected] or visit www.7-eleven.com.ph.

 

1 COMMENT

  1. Beware 7-Eleven franchise applicants and present franchisees!With the rapid expansion and mushrooming of 7-Eleven new outlets resulting from 1996 outlets last year to the expected 2347 stores at the end of 2017,expect cannibalizatio of sales from each other due to the uncontrolled establishment of new are being put up,do NOT warrant a bright profitable operation.7-Eleven management,in our case and in some cases,do NOT advise the present franchisees of their proposed market trade areas during the application period and just doing the negotiations to open up new outlets WITHOUT the knowledge of the pioneer franchisees(LACK OF TRANSPARENCY).7-Eleven,as in our case in Alta Tierra,Jaro,Iloilo City,negotiated to open up just 700 meters away from Alta Tierra,a new outlet in Gran Plains which was INCLUDED in our BUSINESS PLAN submitted as REQUIRED by 7-Eleven.The Visayas manager even admitted that he did NOT read the business plan submitted to them.7-Eleven did NOT perform a regular annual financial review for the past 2 years as agreed in our contract as to assess sales and profitability.It doesn’t care if you are profiting or losing when it plans to open up new outlets near our outlet.Studies show that in order for one particular branded convenience store to have a good chance to be profitable,is for the franchise to have an access to around 60 to 100,000 potential customers for a certain radial distance.In our case in Alta Tierra,North Jaro,Iloilo City,we only have a population of around 60,000 and with our submitted business plan NOT denied by 7-Eleven,we were confident because the financial template given to us by 7-Eleven was just right in the first year of operation.But when 7-Eleven opened up new outlets in the nearby barangays of Tagbak and Cubay near Alta Tierra,some CANNIBALIZATION occured to the DETRIMENT of the 3 outlets competing closely with each other for a small area and population.Things would probably worsen if the new Gran Plains outlet would open despite the present franchisees’ opposition.In that case,there would be 4 outlets competing for the 60,000 population.We do hope and pray that 7-Eleven would have the HEART to make a WIN-WIN solution and NOT PROFIT at the expense of its franchisees,especially the pioneer ones.We do hope 7-Eleven would not fall in the CULTURE of CORPORATE GREED.

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