By James A. Loyola
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.