PHILIPPINE Seven Corp., the master-franchise holder of 7-Eleven in the Philippines, said it will spend P3 billion this year as its capital expenditures (capex) as the company increases its store network at a faster pace in a move to protect its leading market share.
The company said the capex is more than 50 percent higher than that of last year.
“[The company] has taken steps to protect and expand its leadership in light of increased competition, recognizing that rewards for market share are especially strong in the convenience-store sector,” said Jose Victor Paterno, the company’s president and CEO.
He said the long-term growth prospects are favorable and he believes that the Philippine Seven can sustain its momentum to meet earnings and store-expansion goals.
The company ended last year with 1,282 stores all over the country, 273 more than 2013’s 1,009 stores.
It opened 286 stores last year and closed down 13 stores.
The company is increasing its rate of expansion to ward off a slew of convenience-store chains that will open in the country in the next few months following the country’s economic expansion.
Its closest competitor at the moment is Japan’s Ministop brand, brought in by the Gokongwei family. It has about 500 branches in the country.
Family Mart stores are also being established by a joint venture of the Ayala and Tantoco families, Lucio Co’s Puregold Price Club Inc. will bring in Lawson, while the Sy family is slowing putting up its Indonesian brand Alfamart in the southern part of Metro Manila.
All of these brands are targeting to establish at least 500 branches in key cities of the country.
Manuel Villar’s homegrown brand All Day, meanwhile, will also be built at most Vista Land and Lifescapes Inc.’s subdivisions and villages.
Philippine Seven acquired from Southland Corp., now Seven Eleven Inc. of Dallas, Texas, the license to operate 7-Eleven stores in the Philippines in December 1982.