Philippine Seven Corporation (PSC), the publicly-listed local franchisor of the 7-Eleven convenience store chain, is allotting capital expenditures of P600 million for 2010.

In a press conference for the launch of the 7-Eleven store at Caltex station in Malugay, Makati, Philseven president Victor Paterno said that, of the amount, P400 million will be spent for the expansion of its network of stores.

Paterno said they are targeting to put up 120 stores next year. However, he did not specify how many of these 120 stores will be located inside a Caltex gas station as part of their recent agreement.
Last year, he said they have put up at least 70 stores and this year they are targeting at least 100 stores.

The remaining P200 million would be used to finance other projects of the company such as the upgrading of existing facilities. At present, there are about 400 7-Eleven stores operating in Luzon.

Last August, Chevron Philippines Inc., and PSC signed an agreement that would allow the latter to assume the operations of the existing StarMart convenience stores.

By the end of the year, some 21 7-Eleven convenience stores will be operations in Caltex retail stations in Metro Manila. Paterno said three stores are already in operation; around six more will be added within the month and another 12 more before the end of the year.

Paterno said this new arrangement will enable the company to continue with its aggressive expansion plans. Over the years, he said they have been seeing 20-25 percent growth in its network.

For his part, Chevron country chairman Jim Meynink said this synergy of two popular brands is expected to boost fuel and consumer sales as patrons enjoy the benefit of getting their fuels and consumer products all in the same location.