Japanese convenience store chain opens five outlets in Cebu

CEBU, Philippines- Japanese convenience store chain Family Mart is set to open 120 stores in Cebu province in the next 10 years taking advantage of the growing interest for experiential convenience shopping in the Philippines.

Family Mart is operated in the country through a joint venture between giant conglomerates–Ayala Land Inc., and Rustan's SSI Group, through the Philippine Mart CVS Inc.

It recently opened five stores simultaneously in different areas in Cebu, in Arc One Capitol Square in Escario, Streetscape at Maria Luisa Road, Banilad, and eBloc Towers 1,2 and 3 in Cebu I.T. Park.

In Cebu province, Family Mart stores are managed by its territorial franchisee Family Table Inc.

"The Philippine market is ripe for convenience store type of retailing. What will set us apart from the competitors is Family Mart's commitment to shopping and dining experience in a convenience store set-up," said Eduardo N. Paredes Jr., Philippine Family Mart CVS Inc., general manager.

Family Table Inc., president and managing director Allen Arvin Angbetic Tan said the company is opening at least 12 stores every year in the next 10 years adding that it is not a difficult target to achieve considering that Cebu's economic expansion led by tourism and the outsourcing sectors is phenomenal.

Tan, who owns several franchised businesses in Cebu, such as Coffee Bean and Tea Leaf, Red Box, Shakey’s, among others said that the confidence of the company is primarily founded by Family Mart's strong name and commitment to quality and fast service.

"We take convenience seriously," said Tan adding that his company is now actively looking at strategic areas within the province for possible location of Family Mart stores.

For the entire country, the company is looking at opening 400 to 500 stores in the next five years. Cebu is the first expansion destination ventured by the company since its entry to the Philippines in 2013.

There are now 105 Family Mart stores spread in different parts of Metro Manila.

Tan said the consumers' changing buying habits, where shopping and dining experience is part of their considerations, strengthened the conviction of the company to easily hit its target of opening at least 120 stores within the province by 10 years.

An investment of P4 million to P6 million is needed to open a full 80-90 square-meter store size. This means, that the Cebu territorial franchisee is ready to spend a little over P700 million in 10 years.

Global market research TNS and consultancy group Kantar Retail projected that the Philippines can expect the convenience store sector to grow further in the next three to four years as the country continues to experience economic stability.

The research firm indicated that the convenience sector will mirror the consumer landscape in the next few years as the country enjoys more economic development.

According to the report, the consumer landscape is changing. About 70 percent of the Philippines will be urbanized by next year. The cost of doing business has actually gone up so it makes more economical sense to look at smaller [store] format.

The report emphasized that traditional trade such as sari-sari stores will remain to be an important sector.

According to the report, the growth of convenience store in the country will drive the sari-sari stores to compete by standardizing the products they would offer to their target consumers.  (FREEMAN)