PSC, the largest convenience store network in the country, eyes further expansion and plans to invest upwards of US$65 million .Bulk of the said amount to be allocated to new store opening, store renovation and warehouse expansion. PSC, which is Increasing its capital outlay by more than 50% to support expansion goals expects that investments will come to fruition and seeks to add to the impressive results it has produced so far.
Phillipine Seven Coporation (PSC), a local listed convenience store chain operator, is investing up to $65.9 million (P3 billion) for the construction of more 7-eleven stores in the country.
PSC president and CEO Jose Victor Paterno told company shareholders in his annual report that the company will be increasing its capital expenditures budget by more than 50 per cent, to support its accelerated expansion strategy for the 24/7 convenience store business.
He noted that bulk of the amount will be allocated to new store opening, store renovation, and warehouse expansion.
PSC ended the first half of 2015 with a total of 1,405 7-eleven stores nationwide, up by 25.3 per cent compared with same period last year.
“We will be operating ten warehouses by the year-end throughout Luzon, Mindanao, and the three islands in the Visayas, versus four in mid 2014. To put such costs in perspective, operators in contiguous territories typically serve 1000 stores per DC,” Paterno said, noting PSC has down-scaled and adapted its model to be cost effective for smaller areas.
The executive expressed optimism that the growing business process outsourcing industry in the remote urban areas of Luzon and the islands will continue to benefit the convenience store business.
PSC registered a 10.1 per cent growth in net income at the end of the first half of 2015. The improved financial performance was attributed to the increase in sales of all corporate and franchise-operated stores, which posted growth of 24.3% to Peso 12.2 billion.
The company achieved another milestone during the second quarter by opening four 7-Eleven stores in Davao City and Cagayan de Oro and two stores in Boracay.
PSC’s last trading price increased 2.80 per cent or P3.00 to close at P110.