PHOENIX PETROLEUM Philippines, Inc., the buyer of the local Family Mart convenience stores, is targeting employees of business process outsourcing (BPO) firms as its main market more than the customers in its gasoline stations all over the country.
“The priority is to put them in central business districts (CBDs),” said Henry Albert R. Fadullon, Phoenix chief operating officer.
He said that although there are opportunities to put the stores in existing gasoline stations, Phoenix is looking more at taking advantage in the shift in consumers’ lifestyle from commuting to dorming.
“There’s no place for you to cook, to eat, but positioning the Family Mart stores in CBDs you have the opportunity to serve that change in lifestyle,” he said.
He said Phoenix is reformatting Family Mart from convenience stores to provide more option for people to take out something ready to eat. Family Mart is a chain of convenience store that is franchised from Japan.
“In Japan, Family Mart is a major destination for food,” he said.
In October, Phoenix signed a memorandum of to acquire Philippine FamilyMart (PFM), the third-largest convenience store brand in the country. The deal is awaiting approval from the Philippine Competition Commission (PCC).
“We have a different partner in Family Mart, a different partner in the gasoline stations. You cannot force a [gasoline station] partner to also franchise Family Mart,” said Ignacia S. Braga IV, vice-president for finance of Phoenix’s parent Udenna Corp.
Ms. Braga said the plan for Family Mart, should Phoenix secure clearance from the antitrust regulator, is to locate in areas where BPOs are thriving, particularly in business districts of the country’s big cities.
She said about 70% of the gasoline stations are partnerships between Phoenix and dealer operators, thus the decision to put in the convenience stores is not within the company’s control.
Some partnerships also have gasoline station properties belonging to Phoenix but operated by dealers.
“You find somebody who will run it for you,” she said. “[There are] company-owned, company-operated or company-owned, dealer-operated, [or] dealer-operated, dealer-owned.”
She added that Phoenix had not taken over the operation of Family Mart yet because the acquisition is still subject to PCC approval.
“Hindi pa kami nakaupo [We haven’t sat in yet],” she said. “Then first-quarter [2018] would be a big move as soon as we are there.”
Phoenix previously said the acquisition of Family Mart complements its retail fuel business. The deal marks its entry into the fast-growing domestic convenience retail market. PFM has 67 stores in Luzon.
As of the third quarter, Phoenix has a total 523 service stations, or 18 more than the end-2016’s 505, company officials said. — Victor V. Saulon
