The nation’s two largest convenience store chain operators yesterday reported rising profitability in the first quarter from a year earlier, supported by store renovations at home and the closing of lossmaking outlets overseas.
President Chain Store Corp (PCSC, 統一超商) posted NT$2.02 billion (US$67.5 million), or NT$1.94 per share, in net profit for the first three months of the year, up from NT$1.69 billion, or NT$1.62 per share, a year ago, the company’s financial statement showed.
PCSC, which operates the nation’s largest convenience store chain, 7-Eleven, is gearing up to open more stores with seats and to boost the company’s sales of fresh food domestically.
However, it is slowing down the pace of its expansion overseas, focusing only on successful markets, such as China and the Philippines.
In March, PCSC president Ray Chen (陳瑞堂) said the company’s strategy this year was to centralize the development of certain business sectors and markets. That means it will focus on raising profitability, instead of store numbers, this year, he said at the time.
Taiwan FamilyMart Co (全家便利商店), the nation’s second-largest convenience store operator, follows the same strategy, helping its to post net profit growth of nearly 90 percent in the first three months.
First-quarter net income totaled NT$108.65 million, or NT$0.49 per share, up from NT$57.24 million, or NT$0.26 per share, a year ago, the company said in a statement.
“Sales of fresh food led to growth of more than 10 percent in the first quarter,” FamilyMart said in the statement.
The company also announced its partnership with PayEasy Ltd (康迅數位整合), with FamilyMart beginning to sell the online shopping Web site’s 200 most-popular products — mostly skin care and cosmetic products — at its 2,900 convenience stores nationwide today.
FamilyMart expects the partnership to generate NT$100 million in revenue for the company in the first two months of sales, which are expected to end in the middle of July.