Convenience stores announce dividends

Taiwan's two largest convenience store chains, 7-Eleven and FamilyMart, yesterday announced generous dividends during their annual shareholders' meetings despite stiff competition among the nation's 8,000-strong convenience stores.

President Chain Store Corp (統一超商), which runs 3,839 7-Eleven outlets nationwide, announced the issuance of a cash dividend of NT$3 (US$0.1) per share.

Since an integrated marketing campaign was launched in late April using the enduring appeal of Hello Kitty, President Chain has seen single-store revenues climb rapidly. Sales reached NT$8.43 billion last month, up 21.6 percent from a year ago.

President Chain plans to have a total of 4,000 outlets by the year's end, company president Hsu Chung-jen (徐重仁) told reporters earlier.

Smaller rival Taiwan Family-Mart Co (全家便利商店) also reported an outstanding performance, declaring dividends of NT$2.5 per share -- which included a cash dividend of NT$2 and a stock dividend of NT$0.5, according to the company's press release.

It recorded NT$11.42 billion in revenues for the first five months of the year, up by 5.84 percent compared with the same period last year, the company said last week.

The company expects to secure double-digit growth in revenues and pre-tax net income this year, with its number of outlets increasing from the current 1,736 to 1,850 by the year's end.