MANILA - The Ayala group and the Tantocos' Rustan's are entering the convenience store industry.
They're partnering with FamilyMart, the second largest convenience store retailer in the world with over 20,000 stores in 8 countries--Japan, Taiwan, South Korea, Thailand, China, USA, Vietnam and Indonesia.
On Monday, Ayala Land Inc. (ALI), through SIAL DVS Retailers Inc., signed a shareholders agreement with FamilyMart Co., Ltd. and Itochu Corp. that will bring the FamilyMart convenience stores in the Philippines.
SIAL is a joint venture between Varejo Corp. and Specialty Investments, Inc., wholly-owned subsidiaries of ALI, and Rustan's Stores Specialists, Inc. (SSI).
SSI is a specialty retail company with the exclusive rights to sell, distribute and market in the country a variety of brands from around the world.
Via the agreement, mall owner Ayala will dip its toes into consumer retail, and Rustan's will broaden its retail businesses, which include Rustan's Express supermarket.
The partnership will compete with John Gokongwei's Ministop chain, also a Japanese venture, and 7-Eleven, an American franchise controlled by a Taiwanese company and the Paterno family.
Smaller competitors include Mercury Drug, Senator Manuel Villar's Finds Convenience Store Inc., and chains operated by Petron, Shell, and Caltex.
FamilyMart and Itochu are listed at the Tokyo Stock Exchange. Its largest shareholder, Itochu Corp., is one of the largest Japanese trading conglomerates. Its businesses include food, logistics services, textile, machinery, information, and communications technology among others. -- with ANC Business Nightly