7-Eleven targets 3,000 stores by 2019

Philippine Seven Corp., the local licensee of 7-Eleven, expects the number of its stores to breach the 3,000mark next year amid better prospects owing to the tax reform law.

PSC president and CEO Jose Victor Paterno said the company would open 370 new stores this year from only 317 last year. Bulk will be located in the Greater Manila Area.

“We will end the year with 2,600. Hopefully, we’ll reach 3,000 next year,” Paterno said in a briefing yesterday. “We are a big beneficiary of the TRAIN [Tax Reform for Acceleration and Inclusion],” he added.

PSC remains on track in terms of its store expansion program. It earmarked P3.5 billion for its capital expenditures this year.

Even with the tax reform, which slashed personal income tax rate, consumer spending has not significantly changed, Paterno said.

“Sugar drinks are flat in volume, but increased in value while non-tax categories also increased in volume,” he said.

PSC expects to sustain its double-digit growth in net income this year. As of the first half, the convenience store operator grew its net income by 19 percent to P533.2 million.

The company continues to expand merchandise by launching of new food and beverage items such as fried chicken and coffee among others.

It is now in talks with a Cebu-based lechon company for the possible supply of the Filipino favorite food in some of its stores.

“We are still exploring so maybe towards the end of the year,” Paterno said.