Retailing, Franchising, and Consumerism Business Intelligence in China

7-Eleven Releases Expansion Plans In Guangdong

According to Li Jiahui, president of Guangdong Sai Yi Convenience Stores, the company plans to increase the number of its 7-Eleven stores in Guangdong to 500 by the end of 2008 and the number will be further increased to 1,000 in three to five years.

The company, which is the main franchisee of 7-Eleven in Guangdong, released this expansion plan at the 16th anniversary of 7-Eleven South China and the opening ceremony of its 480th 7-Eleven store.

In the last two years, the expansion rate of 7-Eleven in South China has been three times than that of eight years ago. At the same time, the convenience store brand also faces greater competitive pressure from its rivals. However, Li is confident about the current situation. She said that the competition in Guangdong's market is not severe and it is possible for the company to open 100 new stores within one or two years. The company has been fully prepared for an overall expansion across the Guangdong Province. Having opened over ten stores in Foshan in 2007, they will open more stores in the year 2008.

Jointly founded by Dairy Farm International Holdings and Guangdong Sinogiant Commercial Development Company, Guangdong Sai Yi, which manages 7-Eleven stores in Guangdong, is one of the first companies that gained a license to manage convenience stores in Chinese mainland. Apart from the 7-Eleven stores in Beijing that are managed by the Japanese Ito Yokado group and those in Shanghai that are managed by the Taiwan-based 7-Eleven company, most Chinese mainland regions do not have authorized 7-Eleven stores at present.

Li stated that if the company was successful in Guangdong then they might apply for licenses for other regions.

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