CEBU, Philippines - Basing the economic growth and populace of the Queen City of the South, 7-Eleven has finally expanded to the Visayas region and penetrated the Cebu market as the global convenience store chain officially opened an initial of seven stores yesterday. The new stores are situated at Escario Central, JY Square Mall, University of Cebu – Lapu-Lapu and Mandaue, Tune Hotels, Bigfoot Ramos, Caltex North Reclamation Area, and Caltex Mango Avenue.
Philippine Seven Corporation (PSC) President and Chief Executive Officer Jose Victor Paterno said in a press conference that the company, as the country’s licensee and the local franchisor of 7-Eleven, has chosen Cebu to house its first store in Visayas based on the province’s impressive growth and population driver.
“We came here three years ago to work out with the expansion but we thought, maybe it’s not time yet. The thing with convenience store is that it must be logistically strategic since the investment is big. So we came back last year and we were impressed with how fast Cebu has grown. We are even thrilled with the response of Cebuanos especially with Slurpees,” he added.
Evident to such market acceptance, he noted that Manila-based stores only has one machine each but Cebu has two per store and now, the company plans to add additional cash registers to accommodate the growing number of customers.
He also said that the products and services of 7-Eleven stores primarily caters to the young generation particularly the working professionals and call center agents.
He noted that the company projects a 25-30% sales growth compared to last year’s performance of the chain store.
“Philippine economy is taking off. We’re very bullish as we see other businessmen who are also confident with Cebu. Although the pricing of some products here is lower than in Manila, the market of Cebu justifies it,” Paterno said.
With 750 existing stores in the country located mainly in Luzon, he added that they are planning to end 2012 with 150 more stores nationwide.
A total of 100 stores are planned for Cebu in the next three years and at least 30 of which will be opened by the end of this year.
PSC’s partnership with Chevron Philippines, Inc. also enabled the convenience store chain to open 7-Eleven stores in Caltex stations in metro Cebu in which 15 stores are slated to open at Caltex outlets by year-end.
Each store has a total investment of P5 million.
Aside from Cebu, Paterno revealed that they are eyeing Bacolod and Iloilo as one of the key cities in the region for the expansion of 7-Eleven.
Such expansion, he continued, would take place only after Cebu which is considered as their main warehouse in Visayas will be stabilized.
Chris Tanco, 7-Eleven International Executive Vice President and Head of International, said that Cebu is considered as critical and significant market for the company.
“This is a very important watershed moment in the development of the 7-Eleven Philippines. This is a great achievement and exciting the market. Cebuanos can be very proud to be part of the major global convenience family,” he stated.
He further said that the initial success of 7-Eleven stores in Cebu has been impressive particularly with the growing sales of its Slurpee beverages and the phenomenal support of the public.
He then revealed that the company has been earning a US$70-billion annual revenue in all of its 47 000 7-Eleven stores in 16 different countries worldwide while serving 40 million customers every day.
Meanwhile, President Chain Store Corp. Senior Vice President Yen-Sen Yang said that opening stores in Cebu is considered as a major achievement for the company, citing that they are looking forward to more opportunities of extending to other regions.
Internationally, 7-Eleven licensees and affiliates operate in 16 countries worldwide including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Indonesia, Mexico, Singapore, Australia, Philippines, Norway, Sweden and Denmark.
Aside from its Slurpee beverages, 7-Eleven is also known for its Big Bite hotdogs, soft serve ice cream, fresh brewed coffee, siopao, pasta, stuffed pandesal, and traditional Filipino favorites such as hard boiled eggs, balut and green mango with bagoong.
Along with its 24/7 convenience, it also offers services including bills payment, phone/call cards and sim packs, and 7-Connect that allows customers to pay for online purchases with cash through any 7-Eleven store. (FREEMAN)