Philippine Seven Corp. (PSC), the exclusive licensor of global C-store chain giant 7-Eleven, expands its retail presence in Central Luzon with the landmark opening of its first store in Aurora Province.
Taking advantage of the highly populated and touristheavy location, given Aurora’s fast-rising reputation as an ideal surfing destination, the opening of the new outlet in Dipaculao further builds PSC’s commitment to open up more convenience outlets for potential markets outside Metro Manila.
Areas up for expansion include Region 2 (Isabela, Tuguegarao, Nueva Vizcaya and Mindoro), Visayas (Leyte, Tacloban and the rest of the eastern part of the province) and Mindanao (Surigao Del Sur and Norte and Sultan Kudarat).
In photo welcoming guests and customers are the store franchisee representatives Roy Angara (6th from left) and Ariel De Jesus (5th from left), together with PSC’s start up officers, area managers and operations field consultants.
To date, PSC operates 2,287 7-Eleven stores in the country. With its unique business format flexibility, 7-Eleven remains the most trusted franchise business of choice among potential partners. Via its flexible franchise packages, franchise partners are offered two ways to benefit from a proven system: Regular New Store Franchise (open a new 7-Eleven store), and Property Conversion (convert an established business or properties into a 7-Eleven franchise). For more details on 7-Eleven’s franchise opportunity offerings, call (02) 7269968, 09209508651, 0917-8711686, email firstname.lastname@example.org or visit www.7-eleven.com.ph.
After opening 318 new stores in 2017, Philippine Seven Corp. (PSC), the exclusive local licensor of global C-store chain 7-Eleven, announced it was stepping up its momentum with more strategic franchising initiatives as part of its aggressive expansion plan.
As it embarks for long-term profitability and strong leadership this 2018, PSC, with a C-store fleet now pegged at 2,285, is targeting to open 375 new stores in various strategic locations this fiscal year.
Areas up for expansion include Region 2 (namely Isabela, Tuguegarao, Nueva Vizcaya and also Mindoro). For Visayas, PSC will be starting expansion in Leyte, Tacloban, and the rest of Eastern Visayas. In Mindanao, the company is planning to open stores in Surigao Del Sur and Norte and Sultan Kudarat.
“This year’s plan for Visayas and Mindanao is to open 75% franchise stores. Also, we have formulated a new franchise offer, the FC3, which is a lower investment compared to our existing franchise package. From R3.5 to R5-million investment, we came up with the new franchise package which is around less than half a million,” revealed Francis Medina, Business Development Unit Head.
Via the FC3 package, the company is targeting to have “a franchise ratio from 54% to 60%.”
“Our FC ratio is still more than half of our total stores. As of 2017, we already started converting some of our company-owned stores to franchise-owned. This year, we are planning to fully launch the FC3 to the public and we are expecting a heavy traffic of inquiries from there. The new program requires a full time store operator that will be hands on with store operations. Also, applicants will undergo 3-5 months of operations training,” he further stated.
According to Medina, the company’s successful finish in 2017 was due to consolidated efforts and solid execution of strategies.
Increased efficiency and constant elevation of customer shopping experiences through great value product choices and service offerings also account for 7-Eleven’s progress in the market. Another accomplishment of the company, he added, is its milestone partnership which resulted to a 100th store under Chevron-Caltex station.
“We touch base areas where our competitors are not present yet. We tie up with logistical companies especially now that we are going into islands. Also, forging partnerships with institutional accounts and developers is a must,” said Medina.
Taken altogether, Medina said these factors have produced profitable bottom-line results for PSC.
“Despite the competition with other C-stores opening, we still managed to continue expanding into new territories, study new areas with potential for C-store concept. The company’s focus in 2017 was on aggressive expansion nationwide, especially Visayas and Mindanao. For this year, we were already able to open our first store in Bohol located in Panglao. It was opened last May,” Medina stated.
Given the new challenges brought forth by the newly-implemented Tax Reform for Acceleration and Inclusion (TRAIN) law and competition with existing and new C-store market players, PSC is confident that, through continuous product innovation and new partnerships, 7-Eleven will continue to attract prospective partners.
“We are building momentum for our business by continually innovating our products, especially our proprietary brands, and services to give greater value to our patrons and shareholders. As of now, we are looking into venturing and expanding our e-commerce usage to provide products and services to customers in the most convenient way possible. They can already use CLiQQ APP as their wallet to buy 7-Eleven products,” Medina said.
“PSC is also formulating our Store of the Future 3 design that aims to enhance the 7-Eleven store image. We are forging new partnerships for new products (we are enhancing our “Crisp Bites” products by building new satellite kitchens) and services as well. Our digital strategy enhancement of Cliqq app and e-commerce is also on our timeline,” Medina concluded.
7-Eleven bagged the Best Booth Display Award at the recently-concluded Franchise Asia Philippines Exposition 2017 held at the SMX Convention Center in Pasay City. 7-Eleven bested other booths because of visual impact, creativity and originality in brand marketing and promotions, as well as audience response during the three-day exhibit. Organized by the Philippine Franchise Association, the annual exposition is touted as Asia’s biggest franchise convention of the industry’s top players, hall of famers and emerging homegrown brands.
*This article is published in The Philippine Star newspaper, August 21, 2017, page B2.
By James A. Loyola, Manila Bulletin | Published August 12, 2017, 10:01 PM
Philippine Seven Corporation (PSC), the local licensee of 7-Eleven Convenience Stores, reported that its net income generated during the first six months of the year stood at P446.4 million compared to P472.3 million in the same period of 2016.
In a disclosure, the firm said better sales in the second quarter reduced the rate of decline in net income from the 13.3 percent reported in the first quarter to 5.5 percent by the end of the first half.
PSC reported improved same store sales in the second quarter by posting growth of 1.2 percent. This reversed the 2.5 percent decline registered in the preceding quarter and brought year-to-date same store sales decrease to only 1.0 percent. Retail sales of all stores (or system-wide sales) totaled to P18.1 billion, up by 16.9 percent compared with the level set in the same period in 2016.
The increase in sales can be attributed to the higher number of operating stores, which rose by 19.9 percent or by 347 stores to end the quarter with 2,087 stores all over the Philippines.
PSC ended the first half of 2017 with a nation-wide store count of 2,087 stores. There were 1,686 7-Eleven stores in Luzon (829 of which are in Metro Manila), 269 in Visayas and 132 in Mindanao. Franchisees control 54 percent of all stores while the remaining 46 percent are corporate-owned.
“The Company remains on track when it comes to pursuing its store expansion program. It continues to invest in opening new stores in existing and new markets even if competition had slowed down,” PSC said.
It noted that “the capacity building expenditures on logistics assets and organizational capability have produced favorable results. The focus of the organization going forward will be on increasing sales per store.”
PSC said there are various programs lined up covering expanding merchandise assortment and launching of new food and beverage items to serve as differentiation compared with other channels. New services will be introduced to take advantage of growing customer preference towards innovation and convenience.