MANILA, Philippines — Philippine Seven Corp., operator of the country’s largest convenience store chain 7-Eleven, expects sales to hit P10 billion this year from P9 billion last year as the company is lording it over competition with 750 total stores by end of this year.

Victor Paterno, president and CEO Philippine Seven Corp., told reporters at the press launch for the Franchise Asia Conference 2011 to be held here in September this year, they are going to open its 600th store on Wednesday in McKinley Hill, Fort Bonifacio .

They have targeted to open 150 new stores this year of which 60 had been opened already. There were only 500 7-Eleven stores last year with 50 percent located in Metro Manila.

With the aggressive store openings, the company has allocated between P600 million to P700 million capital expenditures this year.

Its closest competitor is Mini-Stop but is way below in terms of the number of stores. 7-Eleven accounts for 50 percent of the total convenience store sector.

7-Eleven has also saturated most call center buildings in the metropolis with an estimated 100 stores.

But Paterno said the ratio of 7-Eleven to Philippine population is one to 25,000 population, still poor compared to Taipe’s 1 store for every 2,000 population.

Philippine Seven is 57 percent owned by the President Chain Store of Taiwan although the management is undertaken by its Filipino partner, the Paterno Group.

Paterno attributed its growth to the fact that 7-Eleven is an easy business model for joint venture arrangements or franchising because of its proven success model.

Per store has a total investments of P5 million with the Philippine Seven providing all the equipment worth P2.5 million.

A store’s return of investments can be realized in three to four years.(BCM)