Prime Time Group’s Talent, Track Record, Timing Converge with Puerto Rico’s Demand for Convenience Stores, Allowing for Ambitious 7-Eleven Expansion Project
by: Elisabeth Lawrence
With four million residents and the most vibrant economy in the Caribbean region, Puerto Rico is a prime investment target for U.S. investors. When Prime Time Group, Inc. (www.primetimestores.com) bought Puerto Rico-7 through its affiliates, it took over their fourteen 7-Eleven stores in the greater San Juan area and became the exclusive licensee for 7-Eleven convenience stores throughout Puerto Rico.
The company has the talent, track record, and timing to take advantage of strong market demand and implement its ambitious plans for expansion. “The Puerto Rican convenience store market is virtually untapped,” said Johnny Ray Arnold, chairman and CEO of Prime Time Group. “We are now positioned to leverage 7-Eleven’s successful franchise formula with Puerto Rico’s dynamic economy in order to aggressively grow to 300 stores throughout Puerto Rico.”
Arnold’s projections, which include growing revenues from an existing $18 million to over $300 million, are based in part upon studies conducted by 7-Eleven that found parallels between demographics in Puerto Rico and the Dallas Metro area, where 7-Eleven has experienced extraordinary success. “With 1,000 people per square mile, Puerto Rico is ten times more densely populated than the U.S.,” said Arnold, adding, “the potential for growth in the convenience store sector is extraordinary.”
With over 25 years of experience in the convenience store industry, during which he controlled 160 stores in six U.S. states, Arnold is well positioned to bring 7-Eleven to Puerto Rico’s emerging market. Prime Time Group has divested itself from all its U.S. holdings in order to devote its resources to 7-Eleven expansion opportunities in the U.S. commonwealth.
Prime Time Group, Inc. has developed a marketing strategy designed to build 7-Eleven’s brand recognition and is building a central distribution center to cut costs and improve profit margins. “Our goals are clear cut,” said Arnold. “We are focused on opening new stores while maintaining the history of success, quality, and customer satisfaction that are the cornerstones of 7-Eleven.”
7-Eleven convenience stores outside of the continental U.S. have a proven track record of success. In 1989, for example, the Charoen Pokphand Group of Thailand became a 7-Eleven licensee and has grown to over 2,700 stores that generate $985 million in annual sales.
With 29,500 stores worldwide, over 10 billion transactions every year, and per store revenues that are 30 percent higher than the industry average, the Dallas-based 7-Eleven is the recognized leader in the highly profitable convenience store industry. The company has 23,600 licensee-owned and operated stores in the U.S., its territories, and 15 foreign countries, with a new 7-Eleven franchise opening approximately every four and a half hours.
About The Author:
Elisabeth Lawrence is the Senior Editor for Press Direct International. She is a veteran writer and TV producer/director. Received three EMMY awards while at CBS. Wrote for the Wall Street Journal, and as a TV & video consultant, handled material for Fortune 500 clients including Exxon, Pepsico, The Ladies Home Journal, RJR Nabisco, J.C. Penney, Hill & Knowlton and United Artists.
April 2006
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