Philippine Seven Corp (PhilSeven)., the operator of 7-Eleven convenience stores in the country, brushed off the rapid expansion of mini-marts and hard discounters, stating that the competitive formats pose no material threat to its top line.

Lawrence M. De Leon, PhilSeven head of finance and investor relations, said sales impacts from nearby openings by lower-cost rivals remain negligible and typically recover within months.

“We consider them as indirect competition,” De Leon said during the Philippine Stock Exchange investor briefing.

He attributed the format’s resilience to fundamental differences in consumer usage, framing mini-marts as secondary competitors.

Rival formats focus primarily on deferred consumption through packaged groceries meant for household storage, whereas 7-Eleven targets immediate consumption, De Leon said.

The chain also relies heavily on proprietary offerings, such as chilled beverages, ready-to-eat rice meals, restaurant co-brandings, and customizable ice cups, to anchor customer frequency and preserve product differentiation.

Parent firm President Chain Store Corp., the Taiwan-based retailer holding a stake of more than 52 percent in PhilSeven, views the emerging competition as an opportunity to study shifting market dynamics rather than an operational threat, De Leon added.

The strategy helped protect margins in the first half of the year, with net income rising 3.8 percent to ₱1.84 billion.

System-wide sales, which capture retail revenue and service income across corporate and franchised units, expanded 15.1 percent to ₱55.78 billion. Revenue from contracts with customers climbed 14.9 percent to ₱53.48 billion.

Same-store sales grew 5.9 percent over the six-month period, reversing a 0.9 percent contraction in the prior-year period. A recovery in tobacco and non-alcoholic beverage sales drove the rebound, while average basket sizes increased as digital payment infrastructure expanded. Card payment terminals now operate across 98 percent of the network.

PhilSeven expanded its footprint by nine percent year-over-year to 4,650 locations, generating a 9.2 percent increase in store operating days.

New store openings contributed more than six percent of total system-wide sales over the half, reinforcing plans to continue retail expansion despite shifting competitive landscapes.