7-Eleven Philippines says it is still benefitting from the elections.
Philippine Seven Corporation, the local licensee of 7-Eleven convenience stores, saw its profits rise 32.5 per cent to Php472 million (US$10.04 million) in the first half of 2016, up from the same period in 2015.
Election-related spending in the first quarter continued boost the second quarter results, with sales throughout all stores up 27.2 per cent over last year to P15.5 billion (US$329.5 million).
As of the end of June, Philippine Seven opened 148 new stores and closed 10 to end the month with 1740. Luzon now has 1474 7-Eleven stores, there are 203 in Visayas and 63 in Mindanao. Franchisees control 57 per cent of them, with the balance company-operated.
While the company said it expects competition to be more intense, it believes it is well-positioned to strengthen its share of the convenience store sector. It aims to capitalize on its first-mover advantage and to benefit from its investment in support infrastructure during the last three years.
This year, Philippine Seven says it will invest Php3.5 billion in supporting its store expansion strategy. The bulk of that will be allocated to new store openings, store renovations and equipment acquisition.
Philippine Seven Corporation operates the largest convenience store network in the country. It acquired the license to operate 7-Eleven stores in the Philippines, from Southland Corporation (now Seven Eleven Inc) of Dallas, Texas, in December 1982.
Inside Retail Asia
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