7-Eleven franchise holder in P4.5B-expansion

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PHILIPPINE Seven Corp., master franchisee for 7-Eleven convenience stores in the Philippines, expects to close the year with at least 4,000 stores as it expands actively, particularly in Mindanao.

Jose Victor Paterno, Philippine Seven chief executive officer, said the company will likely spend P4.5 billion to add 450 stores to the end-2023 store network of 3,768.

In the first six months of the year, the company has opened 170 branches.

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Of the planned capital spending, 60 percent will go to funding the opening of new stores, of which 60 percent will be franchise.

“We’re also allotting budget out of the P4.5 billion to remodel older stores, as we renew the contract for those existing stores,” Paterno said.

In expanding in Mindanao, Paterno said the company is in the process of securing the paperwork to speed up the setting up of shops.

“It takes time. We saw these trends really solidify in mid ‘22. And since then, it has been our target for greater expansion in those areas,” Paterno said.

Spendable income in Mindanao has grown over the years and the public is looking for channels where to spend them, Paterno added.

“They want the convenience. We opened more stores this year, we’re opening even more, as a percentage next year more still, because the new store sales are still very high,” he said.

“When you store sales are high, that means you’re not opening fast enough. So we’ve accredited more contractors in the Visayas, we’ve set business development staff, people who acquire sites. So we’d be going faster. We are bullish on the growth in the regions,” he added.

Philippine Seven currently has 110 stores in Mindanao, 552 in Visayas and 3,000 in Luzon.

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