Phil-7 allots P200 million for 50 new stores

MANILA, Philippines - Philippine Seven Corp. will spend close to P200 million this year to open 50 new stores to add to its current 400 stores, Jose Victor P. Paterno, president and chief executive officer of Phil-7 Corp., said yesterday.

At a luncheon press conference marking the opening of its 400th store at the Telus Call Center building in Cubao, Quezon City, Paterno expressed confidence that Phil-7 would continue to post a 50 percent increase in its net income this year despite the global economic downturn.

Paterno said that in the last five years, Phil-7 had posted net gains of 50 percent annually.

He said the company, is auditing its 2009 first half performance and expects to post a profit.

Last year, Phil-7 posted a net income of P84.27 million.

According to Paterno, the current global economic crisis, may turn out to be milder compared to the Asian crisis in the late 1990s which seven-11 weathered quite well.

He said the 50 new stores that the company plans to open this year, will all be in Luzon. About half will be company-owned, while the other half would be franchises, he added.

Paterno said they still have to study the feasibility of putting up stores in Visayas and Mindanao. He said the primary problem is logistics since the stores have to be re-supplied daily.

Another thing is that, 7-11 stores, have to be located in areas where there is constant traffic, he added.

According to Paterno, 7-11 continues to retain its number one position in spite of growing competition.

Philippine Seven Corp. is 57 percent owned by Taiwan-based President Chain Stores, with the remaining 43 percent owned by businessmen George Araneta, former Sen. and Trade and Industry Secretary Vicente Paterno and former Finance Secretary Jose Pardo and a few other minor Filipino shareholders.

Phil-7 is listed in the Philippine Stock Exchange.