Mon, Mar 25, 2019 - Page 15 News List

President Chain Store plans combination stores

By Chen Cheng-hui  /  Staff reporter

President Chain Store Corp (PCSC, 統一超商), the nation’s largest convenience store operator, plans to add a net 100 stores this year, with more focus on so-called combination stores.

A combination store unites a convenience store with other types of retail business in one facility to provide more complete services to consumers, the company said at an analysts’ meeting on Monday last week.

They have 50 percent higher per-store-daily (PSD) sales than conventional stores, it said.

Coupled with its efforts in product differentiation and store upgrades, as well as improvements to its digital platform for e-commerce sales, PCSC hopes to increase PSD sales to NT$100,000 (US$3,246) from NT$80,000 currently, company president Huang Jui-tien (黃瑞典) said on Tuesday last week.

The company, which operated 5,369 7-Eleven stores in Taiwan as of Dec. 31 last year, has built alliances with other retailers in the fields of cosmetics, bakery goods, fitness, beer and pizza to develop combination stores, Huang said.

The company would focus on new stores that have at least 48 ping (158.68m2) of floor space, Huang added.

PCSC remains positive about sales growth this year after consolidated revenue last year grew 10.74 percent to NT$244.89 billion from a year earlier, he said.

The company in January began offering photograph printing and plans in May to launch a new bonus-point scheme through the company’s ibon app, which analysts attending the meeting on Monday said would help drive e-commerce business growth this year.

The company would expand the 7-Eleven franchise in the Philippines, focusing on e-commerce and fresh food, as it also enhances sales and earnings at its Shanghai and Zhejiang 7-Eleven stores by optimizing store space and introducing more fresh food, analysts said.

Increases in the minimum wage of 5 to 7 percent have prompted PCSC to increase profit sharing with its local 7-Eleven franchisees and increase the monthly subsidy to franchisees from NT$14,000 to NT$20,000 per store in a bid to stabilize long-term business relationships, the company said.

It has also taken suggestions from some franchisees to close earlier due to lower revenue contribution at nighttime, the company said.

About 400 7-Eleven stores in Taiwan no longer stay open around the clock and the company would be flexible on the 24-hour service policy if adjustments are necessary, Huang said.

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