Philippine Seven to Establish New Distribution Center in Zamboanga

Philippine Seven Corp., the local franchisee of the 7-Eleven convenience store chain, has announced plans to establish a new distribution center in Zamboanga Peninsula. This decision follows the remarkable performance of seven new stores that opened in Zamboanga City on July 11, which have reportedly generated sales three to four times higher than the average for new outlets, according to Lawrence De Leon, the company's head of finance and investor relations.

De Leon noted that Mindanao is an underserved market, which has encouraged the company to invest further in the region. He stated that they are now in the process of putting up a new DC in Zamboanga Peninsula to ensure a stable supply for their 7-Eleven stores in those locations. The move aims to strengthen the supply chain as Philippine Seven looks to expand its footprint in Mindanao, where it sees significant opportunities for growth.

“Mindanao is an underserved market and we are very encouraged with the sales performance of the new stores.”Lawrence De Leon, head of finance and investor relations, Philippine Seven Corp.

The company currently operates 4,650 stores nationwide, having opened 182 new outlets at the end of the first half, with more than half located in the Visayas and Mindanao regions. Philippine Seven has allocated about ₱5.5 billion for its expansion efforts this year, targeting over 500 new store openings to surpass 5,000 outlets by year-end.

Distribution logistics are crucial for the company's expansion strategy. De Leon emphasized the importance of having reliable supply lines, stating that you can have the best location, but if you don’t have the supply lines, that will always result in an out-of-stock situation, which will further depress sales. Currently, Philippine Seven operates 28 distribution centers across the country, with facilities already serving the Visayas and Mindanao.

“You can have the best location, but if you don’t have the supply lines, that will always result in an out-of-stock situation.”Lawrence De Leon, head of finance and investor relations, Philippine Seven Corp.

In the second quarter of 2026, 7-Eleven's same-store sales grew by 7.8%, driven by a five percent increase in customer traffic and a two percent rise in average basket size. Metro Manila led this growth with a 12% increase, recovering from a previous contraction. System-wide sales reached ₱29.7 billion, marking a 16% year-on-year increase.

Despite the positive sales trends, De Leon pointed out that permitting processes remain a significant hurdle for the company's expansion, as local government approvals and sufficient electrical capacity are required for new outlets. Nevertheless, Philippine Seven is committed to advancing its presence in the Visayas and Mindanao regions, supported by investments in logistics and a robust pipeline of new stores.