MANILA - The operator of 7-Eleven in the Philippines said it would leverage its convenience store and warehouse network to build a logistics business.
Stores of 7-Eleven will serve as pick-up points for items ordered online, in the same way some Walmart outlets function in the US, said Philippine Seven Corp president and CEO Jose Victor Paterno.
The convenience store chain also handles financial transactions such as bills payment and reloading of prepaid phone and data accounts. Paterno said 7-Eleven handles 1,000 transactions daily.
"E-commerce comes up at the right time for us. In a market that is logistically challenged, logistically difficult we built out, and I can prove this mathematically, the most efficient logistics network," Paterno told ANC's The Boss in an exclusive interview.
The company operates 11 warehouses nationwide and overcomes the country's island geography to deliver to 2,000 stores daily, he said.
The warehouses carry 2,000 different items, compared to several hundreds for retailers that don't follow the convenience store model.
"Now, we have this huge logistics network that we can open up to other needs," he said.
Products in a catalog of 200 products were sold in a pilot that covered 240 stores. It will be expanded to 2,500 products in 1,500 stores by the end of the month, the company said.
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