7-Eleven to expand in residential areas

Philippine Seven Corp. (PSC), the operator of the 7-Eleven convenience store chain in the country, will continue to expand closer to residential areas and boost its product offerings to include more essential items.

PSC president and CEO Jose Victor Paterno said the company would continue to come up with innovative products and services even as it grapples with supply chain problems which have hit companies across the globe.

“We saw an increase in demand for essentials. We will be doing more of that but we’re facing supply challenges. We’re addressing that as well,” Paterno said in a press briefing after the company’s annual stockholders meeting Thursday.

The company reported revenues of P45.1 billion in 2021, up 3.4 percent despite the profound impact of the pandemic. The company posted a net loss of P461 million last year from a net loss of P419 million the year before, owing to the one-time impact of the new CREATE law on deferred tax assets.

The easing of mobility restrictions in late 2021 also helped increase same-store sales growth (SSSG) to 8.5 percent by the fourth quarter. Systemwide sales, which aggregates sales of all stores, rose 1.8 percent to P47.2 billion last year.

“Despite the numerous economic challenges of the COVID-19 pandemic, we are pleased to close 2021 on a positive note. We believe the company’s results validate our commitment to meet constantly changing customer needs – via innovative products and services, and thus affirming our correct direction in this post-pandemic world,” PSC chairman Jose Pardo said.

The exclusive licensor of 7-Eleven in the Philippines credits the growth to its various key initiatives.

These include pivoting store expansion to residential areas, enhancing in-store payments services and the introduction of cash recycler ATMs.

“In 2020, we saw how work-fromhome arrangements impacted our stores in various central business districts,” Paterno said.

Thus, in mid-2020 and 2021, PSC opened stores in residential areas to cater to the needs of hybrid workers who now spend more time at home than in the offices and in CBDs.