MANILA, Philippines — Phoenix Petroleum Philippines Inc. is focused on improving the operations of its recently acquired Japanese convenience store chain FamilyMart with the goal of making it profitable by 2019.
Joseph John Ong, chief finance officer of Phoenix, said the company would prioritize the rehabilitation of existing FamilyMart stores this year to improve its financial performance.
“We’re looking at improving the supply chain deficiencies, processes and procedures,” Ong said.
Ong said FamilyMart Co., Ltd. of Japan told them to slow down on store expansion but they negotiated with the main franchisor to open at least two new stores this year.
Philippine FamilyMart CVS Inc. (PFM)—the company that holds the exclusive franchise for the convenience store—has been incurring losses in the past two years: P428.27 million in 2016 and P356.12 million in 2017.
Phoenix has set a P5-billion capital expenditure program this year, of which P2-4 billion will be used to cover the organic growth in stations, storage capacities, logistics assets and IT.
The balance will cover the requirements of its subsidiaries, including PFM.
Part of the rehabilitation program is to put up a new IT system for the FamilyMart network, Ong said.
The company will also be relocating PFM’s central distribution center closer to Metro Manila.