Philippine Seven Corporation (PhilSeven), the exclusive licensee of 7-Eleven in the Philippines, remains unconcerned by the rapid expansion of mini-marts and hard discounters, confirming that these competing retail models are not eroding its core bottom line.
Lawrence De Leon, head of finance and investor relations at PhilSeven, clarified during a Philippine Stock Exchange (PSE) investor briefing that brief revenue dips following the opening of a low-cost competitor are typically minor and normalize within months.
“We consider them as indirect competition,” De Leon said.
De Leon explained that mini-marts address a distinct shopping purpose by serving planned, bulk grocery purchases for household pantries. Conversely, 7-Eleven remains focused on immediate, on-the-go consumption.
To drive foot traffic and maintain a distinct edge over rivals, the convenience store giant relies heavily on proprietary offerings—such as ready-to-eat rice meals, iced beverages, restaurant collaborations, and customizable ice cups.
Taiwan-based President Chain Store Corporation, which holds a majority stake of over 52% in PhilSeven, views the entrance of new retail formats as an avenue to analyze evolving consumer behavior rather than a threat to current operations.
This distinct target market bolstered the company’s financial resilience during the first half:
- Net Income: Reached P1.84 billion, reflecting a 3.8% year-on-year increase.
- System-Wide Sales: Rose 15.1% to P55.78 billion across company-owned and franchised branches.
- Customer Contract Revenue: Grew 14.9% to P53.48 billion.
- Same-Store Sales: Rebounded to 5.9% growth, reversing a 0.9% drop from the prior period.
The growth in same-store performance was propelled by robust sales of tobacco and non-alcoholic drinks, along with larger average ticket values aided by expanding digital checkout infrastructure—with 98% of branches now equipped with card terminals.
PhilSeven expanded its branch footprint by 9% year-on-year to 4,650 outlets, yielding a 9.2% increase in total operating days.
Outlets launched within the period generated over 6% of total system-wide sales for the half, reinforcing the group’s strategy to press ahead with network expansion.