Taiwan, Japan get 7-Eleven nod for Beijing

GUANGZHOU, China (Reuters) -- U.S. convenience store giant 7-Eleven Inc said on Wednesday it had chosen Taiwan's President Chain Store Corp and Seven-Eleven Japan Corp to open up to 500 stores in Beijing.

"Easily we could go up to 500 stores in five years," Bob Jenkins, international vice president at Texas-based 7-Eleven, said at the opening of the company's 100th store in in China.

President and Seven-Eleven Japan are the two biggest operators of 7-Eleven stores outside of the United States, and will run the stores with a Chinese partner that will own 35 percent of the joint venture, Jenkins said.

The first 7-Elevens in Beijing will likely open in early 2003, he said.

No financial terms were disclosed.

7-Eleven's plan still needs approval from the city and state governments, but Jenkins noted the Chinese government is keen for the company to have a Beijing presence in time for the 2008 Summer Olympics, which Beijing will host.

Other candidates

Also in the running to be 7-Eleven's partners in the Chinese capital were Hong Kong-based Dairy Farm International. Dairy Farm has a 65 percent stake in a joint venture with Sinogiant, which owns 100 7-Eleven shops in Guangdong province, Jenkins said.

Thai agribusiness conglomerate Charoen Pokphand Group, 70 percent owner of the 7-Eleven chain in Thailand, was also vying for the rights to open the joint venture stores in Beijing.

Jenkins said Dairy Farm and Charoen Pokphand will have other opportunities in China as 7-Eleven expands in the country.

The only 7-Elevens in China now are in Guangdong province.

Jenkins declined to say where else the company hoped to set up shop, although he cited the booming financial hub of Shanghai as an obvious choice.

The selection of President and Seven-Eleven Japan still requires the approval of 7-Eleven's board, Jenkins said.