60 outlets will be in Cebu: Convenience store chain to open 120 more branches in Visayas

CEBU, Philippines - Due to the upbeat sales performance of the global convenience store chain in the region, the country’s licensee and the local franchisor of 7-Eleven targets to open 120 more branches in Visayas this year. Half of which will be located in Cebu.

This was announced by Philippine Seven Corporation (PSC) business development supervisor Marikudo Banico who said that 60 additional 7-Eleven stores will be put up in Cebu before the yearends.

He said that the aggressive expansion plan of the company in Visayas is fueled by the improved purchasing power of the local market.

He added that they are rapidly increasing its presence in the region to cope with the supply of its main warehouse located in Cebu. He cited that one warehouse should sustain around 200 stores.

Earlier, PSC president Jose Victor Paterno revealed that they will pour an investment of P2 billion for their planned expansion this year.

They plan to end 2014 with an additional of 300 stores nationwide. It targets to hit 2,000 stores in the next two to three years.

It doubled its branch network across the country from 500 stores in 2010 to 1,018 early this year, 59 of which are currently located in Visayas. There are 48 stores in Cebu, 10 branches in Bacolod and one branch in Iloilo to date.

Two of the 7-Eleven outlets in Cebu are located within the commercial developments of Aboitizland, Inc. namely the Pueblo Verde in Mactan and Persimmon Plus in Mactan.

Banico said that with the positive earnings recently recorded from these stores, they are looking forward to a stronger relationship with the property developer.

He added that as more property developments are planned by AboitizLand across the country, 7-Eleven will also be present in the former’s projects.

He cited that the branch in Pueblo Verde was reported to rank third in terms of earnings among all 7-Eleven stores nationwide. It reaches an average of P90,000 to P95,000 per day.

Meanwhile, the 7-Eleven branch along N. Bacalso Avenue still in Cebu was hailed as the first top-performing store with daily earnings up to P100,000 and above.

Banico shared that local licensee is eyeing Panay Island and Dumaguete as potential areas to expand.

They are also looking at establishing presence in Mindanao by the third quarter of this year.

He said that PSC will capitalize on its partnership with Chevron Philippines, Inc. in opening 7-Eleven stores in Caltex stations in order to fast track its expansion in the southern Philippines.

Such partnership to pilot test a co-branding effort, he added, has been proven effective particularly in Cebu.

PSC business development specialist Raquel Maningas said that while they are open for franchising, the firm has to maintain 10 percent of its overall stores as company-owned.

She said that the investment for a 7 Eleven franchise outlet could reach from P3.5 million to P4 million that is inclusive of the construction of the facility, revolving fund, merchandise supply worth P800,000 and franchise fee of P600,000.

It was in August 2012 that the convenience store chain that is famous for its Slupee first set foot in Cebu with an initial of seven stores opened. This was considered to be the first inter-island expansion of the company outside Luzon.

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. (FREEMAN)