7-Eleven Philippines is pressing ahead with its expansion toward more than 5,000 stores by year-end, even as permitting delays and power availability threaten to slow the pace of new openings.
The convenience store operator ended the first half with 4,650 outlets after adding 182 stores, with more than half of the new locations in the Visayas and Mindanao. It plans to open more than 500 stores this year, backed by capital expenditures of up to P5.5 billion, about 80 percent of which is earmarked for new outlets.
Lawrence de Leon, head of the Finance & Accounting Services Division and investor relations officer, said about 300 additional stores are already in various stages of construction.
“Bottleneck remains to be permitting. So we’re dealing with a lot of local government units,” de Leon said, underscoring how local regulatory requirements can affect the rollout of a nationwide retail network.
Power availability is another constraint, with new stores requiring sufficient electrical capacity before they can begin operations. The company is also expanding logistics infrastructure, including distribution centers, to support growth in markets where its footprint remains relatively thin.
Despite the operational hurdles, demand remains resilient. Second-quarter same-store sales increased 7.8 percent, driven by a 5 percent rise in customer traffic, while system-wide sales climbed 16 percent to P29.7 billion.
The expansion comes as convenience retail becomes increasingly dependent on both physical reach and digital transactions. Card terminals were installed in 98 percent of stores by the first half, while QR and card payments accounted for more than 12 percent of sales.
De Leon said the growing digital payment base could also give 7-Eleven more transaction data to tailor products and promotions to specific customer groups, including tourists.
For 7-Eleven, the challenge is no longer simply finding locations. It is getting permits, power, and infrastructure in place quickly enough to turn expansion plans into operating stores.
