7-Eleven to Open 5,000th Store in Cebu, Accelerating Expansion in the Philippines

MANILA, Philippines — Philippine Seven Corp. (PSC), the exclusive licensor of 7-Eleven stores in the country, is confident it will close the year with at least 5,000 stores, hitting an expansion milestone despite economic pressures from the Middle East crisis. In fact, PSC chair Victor Paterno said reaching the 5,000-store mark was already “carved in stone,” and the company identified Lapu-Lapu City in Cebu as the site of the milestone store, scheduled to open on Dec. 3. Paterno said the chair of 7-Eleven’s parent company in Taiwan would attend. The milestone would come just two years after 7-Eleven opened its 4,000th Philippine store in 2024, four decades after the convenience store chain entered the country. PSC’s aggressive store expansion has helped drive growth this year. In the first half, its net income rose 3.8 percent to P1.84 billion as system-wide sales climbed 15.1 percent. The company ended June with 4,650 stores nationwide, with new stores accounting for more than 6 percent of total sales. Paterno said about half of the remaining stores to be opened on the way to the 5,000-store mark would be company-owned, with the other half operated by franchisees. The expansion has continued despite a challenging macroeconomic environment, including higher fuel, labor, and utility costs that have pressured businesses and consumers. “We’ve done actually pretty well despite everything,” Paterno told reporters on the sidelines of a Makati Business Club roundtable on Thursday. “Our unit economics are better, even if labor and, of course, utility costs eat into that gain,” he added. “But we’re still upbeat about our business model even in these times.” Paterno said sales in July remained strong, while same-store sales growth in the second half could outperform the pace recorded in the first six months when compared with the same period last year. Part of the improvement has come from PSC’s rollout of digital payment terminals, which Paterno said have made a “huge difference,” particularly in affluent and tourist areas, by allowing customers to pay with credit cards. PSC is also looking to introduce more products as 7-Eleven tries to “chase more Gen Z customers.” Asked whether its convenience store format was taking a hit from the rise of hard discounters, Paterno said there was little overlap between their product offerings, with minimarts facing greater competitive pressure from the format. “We don’t worry about that too much,” he said. Even ahead of hitting its 5,000-store milestone, Paterno said PSC has no plans to slow its expansion. He said the company could open around 600 additional stores in 2027, although the final number would depend on economic conditions. The company is looking to push deeper into Western Mindanao, including Zamboanga City, as it extends its reach into areas where logistics and distribution have traditionally been more challenging. “But again, with the caveat that we’re continuing to monitor the economic situation,” he added. “It’s really hard to call geopolitically. I think it’s really hard to call next year.” /pai