In a financial report filed with the Securities and Exchange Commission (SEC), Phil-Seven said it will continue to dominate the convenience store business through aggressive opening of profitable stores in non-traditional areas and the introduction of new products.
Last year, Phil-Seven registered total sales of P3.24 billion or an increase of 7.6 percent from P3.01 billion in 2002, mainly due to increased store days and improved merchandise sales .
Other activities geared to promoting sales and expanding Phil-Seven’s market base will be aggressive product launches and promotional activities.
After three years of consecutive losses, Phil-Seven returned to profitability last year with a net income of P9.3 million. Effective management of cost and expenses helped the company reverse the downward trend in bottom lines since 2000.
Phil-Seven earlier signed an agreement with Jollimart Philippines Corp. to acquire 39 Bingo convenience stores for P130 million.
The purchase consists of the leasehold rights and store assets including building and/or improvements, equipment and fixtures excluding the merchandise inventory.
The agreement was signed by Phil-Seven chairman Vicente Paterno and William Tan Untiong for Jollimart.
Fastfood giant Jollibee Foods Corp. used to own 60 percent interest in Bingo until it decided to sell its stake to retail magnate Henry Sy of the SM Group of Companies in 1999.
Phil-Seven is majority controlled by the President Chain Store Corp. of Taiwan since 2000 following the effectivity of the Retail Trade Liberalization Act allowing foreign companies to invest in retail firms. The President Chain Store Corp. is also a 7-Eleven licensee in Taiwan.
The purchase of Bingo is in line with Phil-Seven’s efforts to further strengthen its dominant foothold in the industry.
Convenience stores mix the characteristics of the traditional sari-sari stores with a wider line-up of products in a supermarket-like atmosphere that is well lit, air-conditioned and strategically located. They are usually open 24 hours a day, 7 days a week. Another unique feature is its promotion of self-service on fastfood items.
The convenience store concept was introduced in the Philippines in 1984 by Phil-Seven.
Other players include Mercury Drug Superstores and Mini-Stop, which is owned and operated by Robinsons Convenience Store Inc. – a joint venture between the Gokongwei family’s Robinsons Land Corp. and Mitsubishi Corp. and Mini Stop Co. Ltd.