FamilyMart is one of the largest convenience store chains in the world and has been a familiar brand for many in the Philippines since it opened here in 2013. But there's been buzz about the current status of the chain in the country recently, especially after posts on social media pointed out several store closures over the last few months.
What's the real status of FamilyMart in the country?
Before we get into what's happening with FamilyMart now, here's a brief history of the company.
FamilyMart traces its roots to Seiyu Stores that first opened in 1973. Three years later it was acquired by a company that changed its name to FamilyMart Co. Ltd. In the 1980s, the company listed in the Tokyo Stock Exchange and went on a rapid expansion to other countries in the succeeding years. Today there are FamilyMart stores in countries like China, Malaysia, Thailand, Taiwan, Indonesia, and Vietnam.
As of June 2023, FamilyMart had a total of 16,499 stores in its home country of Japan and 7,905 stores overseas.
In the Philippines, FamilyMart first opened under a joint venture between Ayala Corp., the SSI Group, and Itochu. The first store opened in April 2013 in Glorietta 3. It quickly grew to over 60 stores within a span of about four years.
In 2017, however, the company that owns the FamilyMart franchise in the Philippines announced that it was selling the convenience store business to Phoenix Petroleum Inc. of Davao-based businessman Dennis Uy. Phoenix Petroleum paid P352.1 million to acquire the FamilyMart business, according to the company's financial reports.
Most business watchers believed the acquisition was a strategic move to complement Uy's petroleum retail business. At the time of the deal, SIAL CVS Retailers-the company that owned and operated the FamilyMart business-owned 60 percent of the business, with 37.6 percent owned by the Japanese parent FamilyMart Co. Ltd., while the remaining 2.4 percent was owned by Itochu.
As part of the acquisition, the franchise agreement between the parent (FamilyMart Co. Ltd) and PFM was renewed for another 10 years. As of December 2021 and 2020, the carrying value of the franchise fee amounted to P5.8 million and P9.7 million, respectively.
Under Uy's Phoenix Petroleum, FamilyMart grew to over 65 branches. In 2019, the company opened what it said was the largest FamilyMart branch in the world at the Udenna Tower in Bonifacio Global City. Measuring 390 square meters, the branch had a dining area, restrooms, function rooms, and a co-working space.
According to Phoenix Petroleum's annual report for 2021, the company earned P18.5 million in franchise fees in 2021, P37.2 million in 2020, and P64.6 million in 2019.
By 2021, FamilyMart had expanded to Mindanao with the opening of two branches in Uy's home province of Davao.
Not much has been heard of FamilyMart since, until earlier this year, when posts started circulating about "abandoned" FamilyMart stores around Metro Manila. Some stores that were closed even had notices like the one pictured below posted on their doors.
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There has been speculation that the FamilyMart is a casualty of Uy's reported mounting business losses, although there has been no evidence to suggest that this is the case.
Another abandoned Family Mart along Chino Roces Avenue, Makati City. I asked the guard sa building bakit sarado na, sabi niya andami daw utang and hindi na nagbabayad. And who is the owner of Family Mart now? It's Dennis Uy. pic.twitter.com/gCZ0rXHyDH
- greg (@gregvangelista) May 5, 2023
An abandoned FamilyMart branch in Market Market, BGC. Newspapers still scattered, supplies inside despite no electricity. Ganito din sa branch nila sa Uptown as I saw last night while running.
- ChatJPT ???? (@dumidyeypee) May 5, 2023
What had happened? pic.twitter.com/Ed7T23Ag0L
Esquire Philippines reached out to Phoenix Petroleum and received this reply from the company's corporate communications office on Friday (July 21):
"While we did intentionally halt operations of several stores to make way for a more efficient and streamlined business, the Philippine franchise of FamilyMart remains promising---now with a more diversified selection of offerings, and broader presence across the county."
We sent follow-up questions and will update this story when the reprsentative replies. Meanwhile, here's hoping we see the resurgence of the FamilyMart business in the country.
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