President Chain Store Corp (統一超商), the nation's largest convenience store operator, has vowed to secure authorization from US-based 7-Eleven Inc to explore the China market after pulling out of a joint venture to open 7-Eleven outlets in Beijing, a company official said yesterday.
The retailer decided to give up its 14 percent of shares in the venture, which would not grant it much say on the board, after a meeting on Tuesday with the US company's officials in Taipei, the official said.
"Since we could not get a bigger share in the venture in Beijing, we have asked for authorization from the US company to set up shop in other parts of China," said Fred Chen (陳福唐), chief financial officer of President Chain.
Bob Jenkins, a 7-Eleven international vice president, arrived on Tuesday to discuss the issue with Kao Ching-yuan (
Although Jenkins expressed his support for the Taiwanese com-pany, no concrete promises were made, Chen said.
The US company may grant permits for outlet operations in China on a region-by-region basis, Chen said.
He refused to say whether the company is eyeing other locations, saying only, "We do not give up any opportunity."
Jenkins was not available for comment as of press time.
With more than 3,500 7-Eleven outlets nationwide, President Chain has become the world's third-largest 7-Eleven franchise and is keen to capitalize on China's retail market before Beijing opens the sector to overseas investors by the end of the year.
"We are very confident about entering the China market with the 7-Eleven brand name. Now negotiations and communications between high-level executives are still under way," Chen said.
Despite a temporary setback for President Chain, a market watcher said more opportunities are available for the company.
"As President Chain Store projects its investment strategies for all of Asia, not just China, losing the Beijing market does not mean a dead end," said Rachel Lee (
The company's first overseas investment project, Philippine Seven Corp, reported net profit of NT$7.89 million for last year.
It has 204 7-Eleven outlets in the Philippines after three years of operation.
The company also is testing opportunities for setting up stores in other large Chinese cities, she said.
President Chain shares rose NT$3.50 to NT$64.50 on the TAIEX.
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