President Chain Store Corporation (
A formal contract formalizing the deal is likely to be signed within the next few weeks.
The contract was tendered by the Taiwan Railway Administration (
President's successful bid proposes replacing the small kiosks currently operating at most stations with "7-Eleven Express" convenience stores.
The new stores will stock a smaller selection from the standard range of goods found at 7-Eleven stores around Taiwan, according to a source who requested anonymity.
It is expected the station-based 7-Elevens will generate NT$200 million in annual revenue for President, which beat off a strong bid from French retailer, Redshop, said the source.
Under the yet-to-be-signed contract, President's station stores will begin serving passengers sometime early in 2001, said the source.
The TRA currently overseas operation of 60 station kiosks -- of which 27 are run directly by the TRA and the remainder leased out to private retailers.
President will be granted the right to replace them with its own stores under the terms of the agreement which was approved on Wednesday by a TRA review committee made up of rail officials and academics.
It is still unclear as to what arrangement the TRA will make with the current proprietors of the station kiosks over the transfer of operating leases.
The deal will see the 470,000 passengers the TRA shuttles around the island every day funneled past the 7-Eleven outlets in the stations, further broadening the omnipresent store's exposure among rural communities and commuters.
The TRA runs the nation's conventional rail services and operates with annual losses of NT$8 billion.
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