Retail News CRM

Tag: Philippines

  • Jollibee Foods Reports 5.6% Rise In Q2 Net Income, Fueled By Overseas Growth And Record Sales

    Jollibee Foods Reports 5.6% Rise In Q2 Net Income, Fueled By Overseas Growth And Record Sales

    Jollibee Foods Corporation (JFC), a leading global fast-food company, has reported a 5.6% year-on-year rise in the second quarter’s attributable net income, reaching $57.78 million. This increase was primarily fueled by robust gains from the firm’s overseas operations and record-breaking system-wide sales (SWS).

    Expansion of Global Store Network

    By the end of June, JFC’s global store network had grown by 45.5% compared to the previous year, sporting a total of 10,119 outlets. This figure includes 6,695 international branches spread across China, North America, EMEA, and other key markets in Asia.

    Record Sales and Revenue

    The SWS for the quarter saw a 19.6% increase, reaching $2.06 billion. This was backed by a rise of 32.6% in the company’s international business. The coffee and tea segment emerged as the top performer, registering a staggering 68.6% growth, largely due to the impact of the South Korean brand, Compose Coffee.

    JFC also saw its revenue jump by 15.5% to $1.4 billion. Operating income followed suit, recording a 19.1% rise to $108.72 million. The group’s same-store sales growth registered a respectable 5.5%, with the Philippine business growing by 6.4% and the international business by 4.1%.

    Successful Business Momentum

    JFC’s CEO, Ernesto Tanmantiong, linked these robust results to the company’s ongoing business momentum and improved operational execution. He highlighted the growth in operating income as a testament to the strength of their coffee and tea segment as well as the consistent contributions from their Philippine business and Jollibee International. Tanmantiong also emphasized the effectiveness of their multi-brand and multi-market strategy in driving the company’s success.

    First Half Performance

    For the first half of the year, the attributable net income showed a 0.7% slip to $101.16 million from $101.88 million the previous year. However, SWS experienced a 19.2% growth to $3.92 billion, and the revenue rose by 15% to $2.66 billion. Correspondingly, the operating income increased by 18.4% to $195.3 million.

    Future Investment Strategy

    Richard Shin, the company’s Chief Financial and Risk Officer, explained their capital would be “selectively deployed” in support of growth in the Philippines, Jollibee International, and the coffee and tea segment. He noted early recovery signs in China and a clear turnaround path for Smashburger in the U.S. Compose Coffee is also expected to surpass 3000 stores, with an anticipated 36% return on invested capital this year.

    Questions & Answers

    What contributed to JFC’s growth in the second quarter?
    The growth was primarily driven by robust gains from their overseas operations and record-breaking system-wide sales.

    Which segment emerged as the top performer for JFC?
    The coffee and tea segment emerged as the top performer, registering a 68.6% growth.

    What are JFC’s future investment strategies?
    JFC plans to selectively deploy capital to support growth in the Philippines, Jollibee International, and the coffee and tea segment. They also anticipate growth in China and the U.S. through brands like Smashburger and Compose Coffee.

  • Palawan Group of Companies Celebrates 40 Years of Empowering Filipinos Through Innovation and Commitment

    Palawan Group of Companies Celebrates 40 Years of Empowering Filipinos Through Innovation and Commitment

    The Palawan Group of Companies recently celebrated a milestone, marking four decades of service with an engaging Partners’ Night on August 5 and 6, 2025, at the Blue Leaf Cosmopolitan in Quezon City. This two-day event was more than just a gala; it was an appreciation of enduring partnerships that have helped the company grow into a powerhouse in the financial services landscape, empowering Filipinos through accessible and reliable offerings.

    Honoring a Legacy of Partnerships

    Attendees included key business partners, sub-agents, suppliers, agencies, affiliates, senior leaders, and valued stakeholders, all united in recognizing the core values of the Palawan Group: “Matatag, Maaasahan, at Mapagkakatiwalaan” (dependable, reliable, and trustworthy). During the celebration, awards such as Loyalty, Outstanding Service Partners, and the Growth Driver award were presented to remarkable partners that have played vital roles in uplifting Filipino communities. Guests participated in the event wearing modern Filipiniana attire, celebrating the theme “Gawang Pinoy, para sa Pinoy” (made by Filipinos, for Filipinos), highlighting the event’s cultural significance.

    Innovating for the Future

    The first evening showcased Palawan’s rebranded Business-to-Business (B2B) division, now known as Palawan for Business, introducing innovative solutions that cater specifically to enterprises and institutional partners. Chief Business Development Officer Lisa Castro-Sabado welcomed attendees with heartfelt remarks, emphasizing that the B2B unit serves as more than just a channel; it’s a catalyst for scalable and efficient solutions that resonate with the brand’s values.

    Over the last three years, the B2B team has engaged with more than 1,700 partners and successfully provided critical services, including disbursement and microinsurance through ProtekTODO, which has covered almost 5 million Filipinos.

    A Gratitude-Fueled Celebration

    The second day offered a heartfelt tribute to the essential supplier network that has been instrumental in supporting the company’s operations since its inception. In a warm welcome, Chief Operations Officer Roberto Ben “Bobbit” Castro acknowledged their pivotal role in maintaining Palawan Group’s high standards, stating, “We would not have achieved this success without your support and solidarity. Today is your day—maraming salamat po (thank you).”

    Further extending this gratitude, Chief Human Resources Officer Korina Castro-Fernando noted that the company’s team extends beyond its offices, encompassing partners who share the same work ethic and commitment to service. This admiration was echoed throughout the day as various segments highlighted the importance of collaboration.

    Bridging Global Connections

    The afternoon event transitioned to an International Partners Summit, drawing leaders and allies from across the global remittance landscape who have helped cultivate Palawan Express Pera Padala into a trusted option for millions of overseas Filipinos. Vice Chairman and Chief Financial Officer Lilian Castro-Selda acknowledged their collaboration, saying, “Your work makes the distance feel shorter, and for that, we are truly grateful.”

    The event wrapped up with accolades for internal teams responsible for the company’s outreach and execution across its four key divisions, as well as a glimpse into future innovations designed to enhance Palawan Group’s offerings.

    Reflections from the Founders

    A series of poignant documentaries traced the company’s journey from its modest beginnings in Puerto Princesa in 1985. The theme “Ikaw Pa Rin, No. 1 sa Palawan” underlined the company’s legacy, exploring everything from the first Palawan Pawnshop signage to the creation of its catchy jingle.

    Founders Mr. Bobby Castro and Ms. Angelita Castro shared heartfelt insights during the event. Mr. Castro drew a parallel between the company’s maturity and human life, stating that turning 40 symbolizes resilience and growth. “We have weathered storms and celebrated victories; we did not just survive but emerged as the market leader in most of our business lines,” he remarked.

    Mrs. Angelita Castro conveyed the spirit of the company’s transformation, emphasizing the importance of compassion and trust in forging a nationwide movement of service built on solid partnerships. “Our journey has been shaped by many incredible individuals: loyal customers, dedicated associates, and trusted partners like you,” she said.

    The celebratory event served to crystallize one undeniable truth: Palawan Group’s 40-year legacy is measured not merely by its growth but by the strength of its partnerships and an unwavering commitment to serve every Filipino. With its partners at its side, the Palawan Group stands ready to flourish, evolve, and reach ever further in the years to come.

    Questions & Answers

    What was the significance of the Partners’ Night event for the Palawan Group?
    The Partners’ Night celebration marked 40 years of service for the Palawan Group, acknowledging the enduring partnerships that have propelled its growth and commitment to empowering Filipinos through reliable financial services.

    How has the Palawan Group’s B2B division evolved recently?
    Recently rebranded as Palawan for Business, the B2B division aims to meet the evolving needs of entrepreneurs and institutional partners, having collaborated with over 1,700 partners to provide diverse services like disbursement and microinsurance.

    What did the founders express during the event?
    Founders Mr. Bobby and Mrs. Angelita Castro reflected on the company’s journey, drawing parallels between its growth and the life stages of a person, emphasizing that resilience, compassion, and strong partnerships have been pivotal in achieving success.

  • SM Group to Divest from Data Centre Business Amid Rising Power Costs in the Philippines

    SM Group to Divest from Data Centre Business Amid Rising Power Costs in the Philippines

    Philippine conglomerate SM Investments Corp., a prominent player in the Sy family business empire, has announced its strategic decision to exit the data centre sector. The company plans to divest its interest in YCO Global Cloud Centres, a move that has raised eyebrows in the industry.

    High Costs Prompt Strategic Shift

    SM Investments’ president and CEO, Frederic C. DyBuncio, pointed to the country’s soaring electricity prices and their relatively small stake in YCO as significant factors influencing this exit. Just a year ago, the company increased its investment in YCO from 10 percent to 18 percent, making this recent withdrawal a notable turnabout. “Right now, we are not really focused on data centres because, from our perspective, power costs are very expensive. The small minority we have in the data centre business, we’ll probably sell that eventually,” DyBuncio revealed in comments reported by the Philippine Star.

    Shifting Preferences in the Data Centre Landscape

    As the market dynamics evolve, DyBuncio highlighted that major global hyperscalers are increasingly favoring locations like Malaysia and Vietnam. These countries present not only lower power expenses but also a reduced risk of natural disasters, making them more attractive for large-scale data operations. It’s a classic case of “the grass is always greener”—but in this instance, it’s clearly rooted in more affordable energy and operational stability.

    A Glimpse into YCO’s Operations

    YCO Global Cloud Centres specializes in developing and operating sustainable, carrier-neutral data centres across the Philippines. Its focus on creating eco-friendly infrastructure shows promise, and while SM Investments steps back, the future of the company may yet remain bright in a region that increasingly demands digital solutions.

    Questions & Answers

    What led SM Investments to exit the data centre business?
    SM Investments decided to move away from the data centre sector primarily due to high electricity costs in the Philippines and their relatively small stake in YCO Global Cloud Centres.

    How significant was SM Investments’ previous investment in YCO?
    Just a year prior to its exit announcement, SM Investments increased its stake in YCO from 10 percent to 18 percent, highlighting a rapid shift in strategy.

    Why are major hyperscalers choosing Malaysia and Vietnam over the Philippines?
    Major hyperscalers prefer Malaysia and Vietnam due to their lower power costs and reduced risks of natural disasters, making these countries more appealing for data centre operations.

  • Indonesia, Malaysia, and Thailand Unveil New Banks for Local Currency Transaction Initiative

    Indonesia, Malaysia, and Thailand Unveil New Banks for Local Currency Transaction Initiative

    In a significant move towards fostering regional economic collaboration, Bank Negara Malaysia (BNM), Bank Indonesia (BI), and the Bank of Thailand (BOT) have unveiled an expanded framework for local currency transactions. This initiative aims to facilitate seamless cross-border settlements for trade and investment among the three nations.

    New Players Join the Local Currency Transaction Framework

    The three central banks have appointed several qualified commercial banks to operationalize this Local Currency Transaction Framework (LCTF). These institutions are set to simplify and enhance trade-related financial engagements across Malaysia, Indonesia, and Thailand. Among the newly appointed banks in Malaysia are AmBank, Bank of China (Malaysia), OCBC Bank Malaysia, Standard Chartered Bank Malaysia, and Sumitomo Mitsui Banking Corporation (SMBC) Malaysia. Indonesia’s roster includes PT Bank Danamon Indonesia, PT Bank OCBC NISP, PT Bank Pembangunan Daerah Jawa Timur, and the Jakarta Branch of Bank of China (Hong Kong).

    For transactions specifically between Malaysia and Thailand, the selected banks mirror those chosen for Indonesia, with the addition of Bank of China (Thai). In the Indonesia-Thailand corridor, key players now include PT Bank OCBC NISP and the Bank of China (Hong Kong) Jakarta Branch.

    Strengthening Regional Connectivity and Economic Fortitude

    The expanded network is expected to significantly improve customer interaction, broaden access to local currency liquidity, and present businesses with enhanced avenues for cross-border transactions. As noted in a recent statement by the central banks, this cooperative framework aims to bolster trade and investment growth, creating a comprehensive support mechanism for businesses looking to navigate the financial landscapes of all three countries.

    Hold on to your receipts, because this initiative could very well make cross-border trading as easy as ordering takeout!

    Questions & Answers

    What is the purpose of the Local Currency Transaction Framework?
    The LCTF aims to facilitate cross-border settlements of trade and investment among Malaysia, Indonesia, and Thailand, making it easier for businesses to transact in local currencies.

    Which banks have been appointed to support the LCTF?
    New additions include Malaysia’s AmBank and Bank of China, and Indonesia’s PT Bank Danamon and PT Bank OCBC NISP, among others, with a comprehensive list of banks aimed at both regional partnerships.

    How will the expanded network benefit businesses?
    The enhanced ACCD network will improve customer outreach, increase market access to local currency liquidity, and provide better options for cross-border transactions, ultimately supporting trade and investment growth.

  • PLDT and Smart Join Forces with Radisys to Enhance Connectivity Through Innovative FWA Testing

    PLDT and Smart Join Forces with Radisys to Enhance Connectivity Through Innovative FWA Testing

    PLDT Inc. and its wireless arm, Smart Communications, are stepping into the future of connectivity with the recent testing of Radisys’ Fixed Wireless Access (FWA) technology. This innovative solution aims to transform internet access in areas where installing fiber-optic infrastructure poses significant challenges. Spearheaded by PLDT’s Network Strategy and Architecture team, this initiative underscores the company’s commitment to enhancing internet coverage across the Philippines, paving the way for a more connected future.

    Revolutionary Connectivity Solutions

    Radisys’ point-to-multipoint FWA technology operates similarly to a traditional cell site, utilizing a single base node to connect with specialized remote radio nodes installed at customer locations, such as homes and commercial buildings. This means that with Radisys FWA, PLDT can now offer fiber-like internet speeds wirelessly, ensuring near-instant access to high-speed connectivity. During testing, the results were nothing short of impressive, with download speeds soaring to 945 Mbps and upload speeds reaching 929 Mbps.

    Unlocking New Possibilities for Consumers

    The promising tests showcased the FWA’s ability to support a range of services, from video streaming to internet browsing, encompassing popular platforms such as YouTube, TikTok, Facebook, and Instagram. This proof of concept is part of PLDT’s aggressive strategy to explore new technologies, which also includes the country’s inaugural trial of 50G passive optical network (PON) technology in 2023. This advancement enables PLDT to offer services at 50 Gbps when needed, further enhancing the digital landscape in the Philippines.

    Strategic Insights from PLDT Leadership

    Radames Zalameda, Vice President and Head of Wireless Network Strategy and Architecture, remarked, “Fixed wireless access using Radisys technology has already been deployed successfully in large markets like India. We saw a strong opportunity to adapt this proven solution for the Philippine setting, particularly in regions where fiber installation remains a challenge.”

    Adding to this, Lennart Olaivar, AVP and Head of the Wireless Network Strategy and Transformation Office, emphasized the systemic benefits of this solution, stating, “This point-to-multipoint solution offers a simpler, faster way to deploy high-speed connectivity without extensive civil works, delivering fiber-like speeds over the air. It’s an ideal option for hard-to-reach or underserved areas.”

    A Commitment to Inclusion and Progress

    Menardo G. Jimenez, Network Head at PLDT and Smart, encapsulated the overarching goal: “At PLDT and Smart, we believe that fast, reliable connectivity is crucial for national development. To bridge the digital divide and ensure that no Filipino is left offline—especially in underserved communities—we must remain at the forefront of innovation. Testing next-generation technologies like fixed wireless access is not just a novelty; it’s about significantly improving the customer experience and supporting the broader digitalization goals of the country.” Who knew chasing connectivity could feel this exhilarating?

    By the end of March 2025, PLDT’s fiber infrastructure will span over 1.2 million cable kilometers, marking it as the most extensive in the nation. This robust network not only underlies Smart’s mobile coverage, which reaches 97% of the Philippine population, but also aligns with PLDT Group’s mission to close connectivity gaps. The company supports the United Nations’ Sustainable Development Goal No. 9—focused on Industry, Innovation, and Infrastructure—underscoring their commitment to a digitally inclusive future.

    Questions & Answers

    What is Radisys Fixed Wireless Access technology?
    Radisys Fixed Wireless Access technology allows internet service providers to offer high-speed, fiber-like internet connectivity wirelessly, using point-to-multipoint technology that connects various customers to a single base node.

    What speeds did PLDT achieve during the testing of this technology?
    During testing, PLDT reached download speeds of 945 Mbps and upload speeds of 929 Mbps, showcasing the impressive capabilities of the Radisys FWA system.

    How does this technology contribute to closing the digital divide in the Philippines?
    The fixed wireless access technology provides a faster and simpler deployment of high-speed internet in underserved areas, ensuring that more Filipinos have access to reliable connectivity and improving overall digital inclusion.

  • ABC-mart Debuts In Philippines With ‘grand Stage’ Store, Marking New Chapter In Asian Expansion

    ABC-mart Debuts In Philippines With ‘grand Stage’ Store, Marking New Chapter In Asian Expansion

    Japanese retail giant ABC-Mart is set to make its first appearance in the Philippines with the opening of a store in Bonifacio Global City (BGC), Manila, scheduled for September. This marks the corporate expansion of the company into a second market in the region following a successful launch in Vietnam which took place in 2022.

    Overseas Expansion

    ABC-Mart currently operates nearly 400 stores overseas, predominantly in South Korea and Taiwan. The company is also actively investigating opportunities for growth in other Asian countries such as Thailand and Indonesia.

    According to Kabir Buxani, the incoming CEO of Sonak Retail Group – the local partner of ABC-Mart – BGC is an ideal location for the brand’s first store in the Philippines. “BGC has a lively atmosphere and sets the tone for fashion in the region,” Buxani indicated.

    The Grand Stage Store

    The store, dubbed as the “Grand Stage,” will span two levels, covering an area of 750 square meters. It is expected to stock over 1,000 products including limited-edition sneakers, sandals, and clothing from major brands such as Nike, Adidas, Puma, Asics, and New Balance.

    In addition, the store will showcase the company’s first-ever wellness corner worldwide, integrating footwear with lifestyle products.

    Koji Higashimae, CEO of ABC-Mart Sonak Philippines, stated that the company’s aspiration is to achieve a balance between variety and accessibility. “Our belief is that style should not compromise comfort and high-quality fashion should be within everyone’s reach,” Higashimae explained.

    Furthermore, the company has plans to open a second outlet later in the year at Mitsukoshi in BGC.

    Questions & Answers

    What is ABC-Mart’s expansion strategy in Asia?
    ABC-Mart is strategically expanding its retail footprint in Asia, having already established stores in South Korea and Taiwan. The company has now stepped into the Philippines and Vietnam, with future prospects in Thailand and Indonesia.

    What can customers expect at the new ABC-Mart store in BGC, Manila?
    Customers can look forward to a wide variety of over 1,000 products, including clothing, limited-edition sneakers, and sandals from well-known brands like Nike, Adidas, and others. The store will also introduce the company’s first-ever wellness corner, which will blend footwear with lifestyle products.

    What is the philosophy of ABC-Mart when it comes to fashion?
    ABC-Mart believes that style should not compromise comfort. The company aims to provide high-quality, fashionable products that are both diverse in variety and accessible to everyone.

  • Jollibee Group Unveils Global Expansion Plan With Comprehensive Rebranding Strategy

    Jollibee Group Unveils Global Expansion Plan With Comprehensive Rebranding Strategy

    Jollibee Foods Corporation (JFC) has recently undergone a rebranding effort, now going by Jollibee Group, with an eye on further global expansion.

    Rebranding for Global Growth

    Despite retaining its legal entity as JFC, the firm has announced that this comprehensive rebranding will encompass a new visual identity, a simplified brand hierarchy, and harmonized naming across all business divisions. The objective is to further fortify the company’s global footprint and enhance its brand value.

    Jollibee Group’s global president and CEO, Ernesto Tanmantiong, explained the reasoning behind this significant move: “Our fundamental aim is to bring joy through superior flavor. This purpose is the driving force behind our innovation, it shapes our customer promise, and it propels our momentum forward.”

    Unveiling the New Identity

    The introduction of the fresh identity took place during internal events, such as the supplier summit and the annual stockholders’ meeting, which were attended by employees and partners. The company is currently deploying this new identity through global media channels and corporate communications.

    Tanmantiong further added, “As we expand globally, we’re not only extending our reach, but also establishing a company that is not only known for business success but also for the joy and quality we bring to people’s lives.”

    Jollibee Group currently has a strong presence in 33 countries, with over 9000 outlets, including locations in the US, the Middle East, and Southeast Asia. Its diversified portfolio includes well-known brands such as Tim Ho Wan, The Coffee Bean and Tea Leaf, Jollibee, Chowking, Greenwich, Red Ribbon, and Mang Inasal.

    Questions & Answers

    What is the main reason for Jollibee Group’s rebranding?
    The main reason for the rebranding is to position the company for further global expansion and enhance its brand value.

    How was the new identity introduced?
    The new identity was introduced during internal events including a supplier summit and the annual stockholder’s meeting. It is now being introduced through global media and corporate communications.

    How many stores does Jollibee Group operate and in how many countries?
    Jollibee Group currently operates more than 9000 stores across 33 countries, including the US, the Middle East, and Southeast Asia.

  • UnionBank Completes Citibank IT Integration in Just Nine Months: A Remarkable Achievement for the Philippines’ Banking Sector

    UnionBank Completes Citibank IT Integration in Just Nine Months: A Remarkable Achievement for the Philippines’ Banking Sector

    UnionBank of the Philippines is making waves in the banking sector after its strategic acquisition of Citibank’s consumer banking operations in the country. In just nine months, the bank has successfully integrated Citibank’s IT systems and unveiled a new Credit Decision Engine (CDE) that is reshaping its customer onboarding and credit approval process.

    This sophisticated new system has automated over 80 percent of applications for credit cards and personal loans, slashing the onboarding time to under 15 minutes per customer. At its peak, UnionBank has been able to book an impressive 50,000 new credit card and loan accounts each month. The seamless blending of systems is a testament to UnionBank’s commitment to enhancing customer experience while maintaining service continuity.

    Since completing the acquisition in 2022 for over SGD 900 million (US$700 million), the bank has absorbed nearly one million new customers. Manoj Varma, UnionBank’s head of consumer banking, acknowledged the pivotal role of the FICO Platform in this transition, noting that it has not only improved operational efficiency but also fostered financial inclusion across the Philippines.

    Credit Decision Engine: A Game Changer for Lifestyle Banking

    The new CDE is a groundbreaking tool designed to evaluate applicants through a combination of bureau data and alternative sources. This advanced system allows UnionBank to extend credit to previously underserved demographics, including gig economy workers and customers with limited credit histories. By implementing risk-based verification, the CDE expedites approvals for low-risk applicants while applying stricter checks for higher-risk segments. The result? Nearly 40 percent of the credit decision-making process has been automated, leading to fewer manual interventions and errors.

    This shift towards automation not only boosts accuracy and speed but is also in lockstep with UnionBank’s mission to promote financial inclusion. “UnionBank has shown how technology isn’t just about algorithms and efficiency, it’s about empowering people,” remarked Nikhil Behl, FICO’s head of software. He further commended UnionBank for building a scalable, inclusive onboarding experience that is both efficient and customer-centric.

    Last year marked another significant expansion for UnionBank, as it extended its use of the FICO Platform to manage credit card limit decisions and real-time authorizations. This strategic move has enhanced its customer management capabilities and fortified its standing as a forward-thinking player in the retail banking landscape.

    Questions & Answers

    What innovations has UnionBank introduced following its acquisition of Citibank’s consumer banking business?
    UnionBank has integrated Citibank’s IT systems and launched a new Credit Decision Engine that automates over 80 percent of credit card and loan applications, significantly reducing onboarding time.

    How does the Credit Decision Engine support financial inclusion in the Philippines?
    The CDE allows UnionBank to evaluate applicants using both bureau data and alternative sources, making it possible to extend credit to underserved populations, like gig workers, and those with limited credit histories.

    What impact has the automation of credit decisions had on UnionBank’s operations?
    The automation has reduced manual interventions and errors by nearly 40 percent, improving accuracy and speed while aligning with UnionBank’s strategy to enhance customer experience and financial accessibility.

  • 7-Eleven Philippines targets 5000 stores by next year

    7-Eleven Philippines targets 5000 stores by next year

    Philippine Seven Corporation (PSC), the entity managing 7-Eleven stores in the Philippines, has its sights set on bolstering its network to a landmark 5000 stores across the nation by the next year.

    On Track for Expansion

    Providing an update at a press briefing, PSC Chairman Jose Victor Paterno voiced the company’s confidence about achieving this ambitious target. He indicated that it is a reasonable assumption to expect the 5000-store mark to be realized within the upcoming year.

    At the conclusion of last year, PSC had a total of 4130 7-Eleven locations strewn across the Philippines. The organization is planning to inaugurate between 450 and 500 additional stores throughout the current year.

    Financial Support for Rollout

    To aid the rollout of these new locations, a capital expenditure program worth PHP5.5 billion (US$97 million) has been established. This fund represents a marginal decrease from the previous allocation of PHP6 billion.

    Aiming to Serve Underserved Markets

    This planned expansion forms a crucial element of PSC’s wider strategy. The company aims to cater to underserved markets and react to the escalating demand for easily accessible and convenient retail options in every corner of the nation.

    Questions & Answers

    What is the expansion target set by Philippine Seven Corporation?
    The company is planning to expand its network to a total of 5000 stores nationwide by the next year.

    How many new 7-Eleven stores does PSC plan to open this year?
    PSC aims to inaugurate between 450 and 500 new locations in the current year.

    What is the objective of PSC’s expansion strategy?
    The strategy aims to reach and serve underserved markets and respond to the increasing demand for accessible and convenient retail options across the nation.

  • Banana Sisters Boosts Global Expansion With Second Flagship Store In Southeast Asia

    Banana Sisters Boosts Global Expansion With Second Flagship Store In Southeast Asia

    Banana Sisters, a South Korean legwear brand, has broadened its global presence by launching its second international flagship store in the SM Mall of Asia. This move forms part of the company’s broader expansion plan in Southeast Asia.

    The new retail outlet occupies a 46-square-meter area situated on the third floor of the mall’s Entertainment section. Shoppers will find an impressive variety of approximately 300 different sock styles in the store. Additionally, the store boasts a range of branded merchandise such as T-shirts, caps, and a selection of eco-friendly bags.

    Banana Sisters is the umbrella company for several sub-brands. These include Banana Sisters, which caters to women, Banana Brothers for men, Biarritz offering chic styles, Bitz for sportswear, and Banana Kids for children’s wear.

    In addition to expanding through physical stores, Banana Sisters also plans to establish an e-commerce platform dedicated to the Philippines. This online venture is set to launch by the end of next year and will provide local payment options and nationwide delivery service.

    Yong Ju Jung, the CEO of Banana Sisters, affirmed that the store at the Mall of Asia will play a crucial role in expanding the brand’s presence in the region.

    Questions & Answers

    What is Banana Sisters’ recent strategic move in Southeast Asia?
    Banana Sisters, a South Korean legwear company, has launched its second international flagship store in the SM Mall of Asia.

    What can shoppers expect to find in the new Banana Sisters store?
    The store boasts approximately 300 different sock styles, as well as a range of branded apparel and accessories, including T-shirts, caps, and eco-friendly bags.

    What are Banana Sisters’ future plans besides expanding their physical stores?
    The company has plans to launch a dedicated Philippine e-commerce platform by the end of next year, offering local payment options and nationwide delivery.

  • 7-eleven Eyes Nationwide Expansion: 5000 Stores In Philippines By Next Year

    7-eleven Eyes Nationwide Expansion: 5000 Stores In Philippines By Next Year

    Philippine Seven Corp (PSC), the company that operates 7-Eleven stores domestically, has plans to significantly increase the number of outlets across the country by next year. The ambitious goal is to expand their current network to an impressive 5000 branch total.

    Ambition for Expansion

    During a recent press briefing, PSC Chairman Jose Victor P Paterno confirmed that the company is well on its way to reaching this considerable goal. He expressed confidence by stating it was “safe to say” that the 5,000-store landmark will be achieved by next year.

    As it stood at the close of last year, PSC was operating 4,130 7-Eleven stores throughout the Philippines. This indicates an intent to open between 450 and 500 new outlets over the course of this year.

    Funding the Growth

    The expansion will be facilitated by a PHP5.5-billion (US$97 million) capital expenditure program. Although this is somewhat less than the previous PHP6-billion allocation, it is by no means a small investment.

    Strategic Expansion

    The planned growth of 7-Eleven outlets is not just about increasing numbers. PSC’s strategy is to target areas that are currently underserved in terms of retail, responding to the growing nationwide demand for retail options that are both accessible and convenient.

    Questions & Answers

    What is the goal of Philippine Seven Corp (PSC) for their 7-Eleven outlets by next year?
    The company aims to expand its current network to a total of 5000 stores nationwide.

    How many new 7-Eleven stores does PSC plan to open this year?
    PSC plans to open between 450 and 500 new outlets over the course of this year.

    What is the strategy behind PSC’s expansion of 7-Eleven outlets?
    The expansion is part of a broader strategy to reach underserved markets and respond to increasing demand for accessible and convenient retail options nationwide.

  • Globe Telecom Aims for 100% Renewable Energy in Over 3,000 Cell Sites by 2028

    Globe Telecom Aims for 100% Renewable Energy in Over 3,000 Cell Sites by 2028

    Globe Telecom is set to revolutionize its energy sourcing by transitioning more than 3,000 cell sites in Metro Manila and the Calabarzon region to renewable energy by 2028. This ambitious initiative aims to eliminate approximately 5.5 million kilograms of greenhouse gas (GHG) emissions annually while tapping into around 80 million kilowatt-hours of clean electricity each year. Talk about a telecom company with an environmental conscience!

    Yoly Crisanto, Globe’s Chief Sustainability and Corporate Communications Officer, emphasized the significance of this move. “By expanding our sourcing of renewable energy to thousands of additional sites, we are taking deliberate steps toward our net-zero goals and proving that clean energy is not only viable but necessary across all operational levels,” she stated.

    Pioneering the telecom sector, Globe has become the first operator in the Philippines to embrace the Energy Regulatory Commission’s Retail Aggregation Program (RAP), which allows companies to merge their energy demand across multiple facilities within the same franchise area. By participating in RAP, Globe gains greater flexibility in selecting its power supplier, accelerating its clean energy transition.

    The company has teamed up with ACEN Renewable Energy Solutions (ACEN RES), part of the Ayala Group, to facilitate this extensive shift toward sustainable energy.

    Irene Maranan, Senior Vice President and Head of Communications & Sustainability at ACEN, remarked, “By enabling the shift of over 3,000 sites to renewable energy, we are not only accelerating Globe’s Scope 2 emissions reduction but also advancing our collective net-zero ambition as a group.”

    Since 2019, Globe has ramped up its decarbonization strategy, becoming a participant in the Green Energy Option Program (GEOP) and the Retail Competition and Open Access (RCOA) framework. The company currently powers 33 high-consumption facilities with renewable energy, 22 of which operate under power purchase agreements (PPA) with ACEN RES.

    In a concrete demonstration of its commitment, Globe sourced 24% of its electricity from renewable sources in 2023. Moreover, it has deployed over 38,000 green network solutions, including energy-efficient hardware and alternative fuel systems, to enhance operational efficiency and reduce emissions.

    With ambitious sustainability goals, Globe aims to cut both direct and indirect emissions by 42% and reduce emissions from its value chain by 25% by 2030, using 2021 as a baseline. By 2050, the company is targeting a staggering 90% reduction in its total carbon footprint.

    Questions & Answers

    How does Globe Telecom plan to reduce its greenhouse gas emissions?
    Globe aims to transition over 3,000 cell sites to renewable energy by 2028, which is projected to eliminate around 5.5 million kilograms of greenhouse gas emissions annually.

    What is the Retail Aggregation Program, and how does it benefit Globe?
    The Retail Aggregation Program allows Globe to consolidate its energy demand across facilities, providing flexibility in energy sourcing and accelerating the move to clean energy.

    What sustainability targets does Globe have for the coming years?
    Globe aims to cut direct and indirect emissions by 42% and reduce value chain emissions by 25% by 2030, with a long-term goal of achieving a 90% reduction in its total carbon footprint by 2050.

  • Globe Business Harnesses Data-Driven Strategies to Fuel Growth in the Digital Marketplace

    Globe Business Harnesses Data-Driven Strategies to Fuel Growth in the Digital Marketplace

    As the digital economy rapidly transforms industries across Southeast Asia, the Philippines is strategically positioning itself to become a pivotal hub for innovation, data, and connectivity. With soaring digital consumption and an advantageous location, the country stands at the forefront of this technological wave.

    In an exclusive interview with Telecom Review Asia, Raymond Policarpio, Vice President and Head of Strategy Management and Business Investments at Globe Business, the corporate arm of Globe Telecom, shed light on the Philippines’ journey to becoming a cornerstone in the global digital economy.

    Charting the Philippines’ Path in the Global Digital Economy

    The Philippines is primed to emerge as a major regional digital hub, bolstered by soaring data consumption rates. Among international data consumers, Filipinos rank high, particularly on platforms like Meta and YouTube. However, to fully realize this potential, robust infrastructure development is essential.

    While neighboring Southeast Asian nations such as Malaysia, Indonesia, Singapore, and Hong Kong are stepping up as regional leaders, the Philippines offers unique advantages, including a strategic location and a sizeable, predominantly working-age demographic. The pivotal challenge lies in enhancing the country’s infrastructure capabilities.

    At Globe Business, addressing this infrastructure gap is a top priority. The company is heavily investing in modernizing its digital infrastructure, encompassing expansive domestic fiber networks and international subsea cables. Additionally, investments in cable landing stations (CLS) and data centers are paramount to ensure the infrastructure remains modern, reliable, and prepared for future needs. These developments are critical not just for technological progress, but positioning the nation in the global digital landscape.

    The Role of Data Centers and Subsea Cables in Digital Advancement

    In today’s data-driven world, information is the new gold, yet it requires the right storage and access solutions. The adage “build it and they will come” rings true—the current volume of data already flowing through the Philippines promises to multiply as we introduce enhanced data centers. Access to this information hinges on robust cable systems, both domestically and internationally.

    Globe Business is actively developing these vital data centers through its subsidiary, STT GDC Philippines, while also forming strategic partnerships for broader infrastructure cooperation. This initiative promises to propel the nation’s digital transformation.

    In the past year, the company launched a domestic submarine cable network to handle rising local data traffic. On the international front, the Asia Link Cable (ALC), expected to connect the Philippines with regional powerhouses Singapore and Japan by 2026/2027, exemplifies these efforts. With several additional cable systems in progress, Globe is focused on scaling infrastructure to keep pace with America’s data surge.

    Infrastructure Investments: Balancing Profit with Purpose

    At Globe Business, the evaluation of infrastructure investments encompasses not only financial returns but also broader societal impact. Leading the Strategy Management team means emphasizing the importance of value creation. Policarpio highlights that when establishing subsea cables, for example, it can take five to seven years for them to come online, necessitating forward-thinking vision to unlock their true potential, not just for Globe but for the entire country.

    The company opts to prioritize sustainability and nation-building, focusing on expanding accessibility for consumers and enterprises alike. This strategic value-driven approach underpins their infrastructure investments.

    The Cloud Revolution: Embracing Trends in Local Business

    Data remains the linchpin, propelling the rise of cloud adoption among businesses. The burgeoning data ecosystem not only fuels interest in cloud computing but also in cybersecurity and artificial intelligence.

    Large enterprises are increasingly embracing cloud solutions, yet what’s particularly intriguing is the rapid cloud uptake among small and medium-sized enterprises. Many SMEs may not fully grasp the intricacies of cloud technology, but they unknowingly leverage it through AI-driven tools and cloud applications from providers like Google and Microsoft.

    Globe Business is responding with comprehensive solutions spanning connectivity, cloud services, and security while offering guidance to SMEs navigating their digital transformation journeys. Helping these businesses thrive is integral to Globe’s mission, as the adoption of cloud and AI technologies becomes an everyday reality.

    Collaboration: The Key to Infrastructure Growth

    Within the competitive telecommunications landscape, collaboration stands crucial at Globe Business. Policarpio asserts that authentic infrastructure growth can stem only from cooperative partnerships, aligning shared objectives among global and local players alike.

    Ongoing Projects to Fortify the Digital Landscape

    Globe Business is diligently engaged in enhancing the country’s digital infrastructure through various significant initiatives. A cornerstone project is the Philippine Domestic Submarine Cable Network, built in partnership with local collaborators to create a fiber-rich and reliably modern backbone tailored to the archipelago’s diverse connectivity needs.

    The company continues to expand its fiber network across the nation while establishing more cable landing stations to meet rising data demands from global titans such as Microsoft, Google, and Meta. The upcoming ALC will link the Philippines to regional hubs like Singapore and Japan, reflecting shifting internet traffic trends driven by geopolitical dynamics. Furthermore, sustained investments in data centers are vital to nurturing this thriving digital ecosystem.

    Questions & Answers

    How is Philippines’ digital infrastructure progressing and what role does Globe Business play?
    The Philippines is advancing as a digital hub, with Globe Business investing heavily in infrastructure such as data centers and subsea cables to support its burgeoning data consumption.

    What impact do data centers have on the country’s digital growth?
    Data centers act as essential receptacles for the ever-increasing data flow, enhancing access and storage capabilities crucial for the Philippines to thrive digitally.

    How does Globe Business measure the success of its infrastructure investments?
    Globe Business emphasizes sustainability and societal value over mere profitability, measuring success by how its investments contribute to accessibility and nation-building.

  • Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes, the renowned American fast food brand, has initiated its franchise program in the Philippines. This move comes in the wake of the country’s stellar performance, making it the leading global market for Popeyes in terms of transactions, as reported by the company’s parent organization, Restaurant Brands International (RBI).

    Franchising: The Logical Next Step

    Dustin Ngo, the Managing Director for Popeyes Philippines, expressed his views on the new franchising initiative. According to Ngo, franchising was the logical next phase in the company’s growth trajectory. He lauded it as a lucrative investment opportunity that aligns perfectly with Popeyes’ expansion plans over the next three years.

    Franchise investment for a 1000sqm drive-thru store varies between PHP$45 million and $50 million, equivalent to US$793,000 to $800,000. The investment package encompasses construction, equipment, training, and a 10-year franchise fee. The continued costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    Comprehensive Support for Franchise Partners

    RBI, along with the local team, will offer comprehensive support to ensure a smooth and efficient setup and operation for the franchise partners. The objective is to make the operation of Popeyes franchises as hassle-free as possible.

    Dan Hayton, the Chief Operating Officer of Popeyes Philippines, further elucidated this point. He expressed the company’s desire for franchise partners to run their Popeyes franchise effortlessly, with the operation starting up as easily as turning a key.

    Questions & Answers

    What is the investment range for opening a Popeyes franchise in the Philippines?
    The investment for a 1000sqm drive-thru store ranges from PHP$45 million to $50 million (US$793,000 to $800,000), which includes costs for construction, equipment, training, and a 10-year franchise fee.

    What are the ongoing costs for a Popeyes franchise?
    The ongoing costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    What kind of support does Popeyes provide to its franchise partners?
    Popeyes, in collaboration with RBI and the local team, provides comprehensive end-to-end support. The focus lies on ensuring a fast setup and operational efficiency for the franchise partners.

  • Cafe Amazon Drives Record-breaking Quarter For Thailand’s Ptt Oil And Retail Business

    Cafe Amazon Drives Record-breaking Quarter For Thailand’s Ptt Oil And Retail Business

    PTT Oil and Retail Business (OR), the lifestyle and retail subsidiary of Thailand’s PTT Group, has announced a record-breaking financial performance for the first quarter of this year. This success is largely attributable to its leading brand Cafe Amazon, which experienced a period of significant expansion throughout Southeast Asia.

    Noteworthy Performance

    Cafe Amazon sold over 112 million cups of coffee during the first quarter, emphasizing the strength of the brand. With 391 stores now in operation outside of Thailand, the cafe chain has become a key driver of OR’s earnings growth. The company’s total revenue hit an impressive US$5.6 billion, with net profits increasing by 46 per cent from the last quarter to approximately $134 million. This represents a 17.6 per cent growth year-on-year.

    ML Peekthong Thongyai, CEO of OR, credited the robust performance to the resilience of the business model. “Our strong performance this quarter underscores our long-term strategic direction. We are expanding with a clear purpose, delivering value for individuals, contributing to community prosperity and demonstrating our commitment to environmental responsibility.”

    Global Expansion

    Cafe Amazon’s reach extends to nine markets. These include Cambodia, Laos, Vietnam, the Philippines, Malaysia, Oman, Saudi Arabia, Bahrain, and Japan.

    The cafe chain is part of OR’s wider Global Business segment. This segment reported a 30.8 per cent year-on-year increase in sales volume together with an 81.5 per cent rise in EBITDA.

    Peekthong reiterated the company’s mission beyond monetary profit. “We’re not just about selling fuel or coffee. Our goal is to build platforms that strengthen local economies, encourage entrepreneurship, and facilitate long-term, sustainable growth.”

    OR oversees 415 PTT Stations and 391 Cafe Amazon outlets across Asia and the Middle East.

    Questions & Answers

    What factors contributed to OR’s record-breaking financial performance?
    The company attributes its success to the significant expansion of Cafe Amazon, which sold over 112 million cups of coffee in the first quarter.

    What markets does Cafe Amazon currently operate in?
    The cafe chain operates in nine markets, including Cambodia, Laos, Vietnam, the Philippines, Malaysia, Oman, Saudi Arabia, Bahrain, and Japan.

    What is OR’s greater mission beyond selling products?
    OR aims to build platforms that strengthen local economies, promote entrepreneurship, and facilitate sustainable, long-term growth.