Outgoing NACS Chairman Victor Paterno Reflects
MANDALUYONG, Philippines — Spending the past year as NACS chairman is not something Victor Paterno, president and CEO of Philippine Seven Corp., an operator of 7-Eleven stores, would have predicted when he was pursuing a career in finance on Wall Street in the late 1980s.
At the invitation of his father, Paterno joined Philippine Seven Corp. as the construction and maintenance manager in 1993. He was appointed president and CEO in 2005 by majority shareholder, President Chain Store Corp. of Taiwan.
Fast forward to present day, as his tenure as NACS chairman comes to a close, Convenience Store News caught up with Paterno to reflect on his time in the position and get his thoughts on the future of convenience retailing.
CSNews: How did you get involved in the convenience retailing industry?
Paterno: I didn't start my career in convenience retailing. Instead, I wanted a career on Wall Street, and that’s what I initially did after earning an engineering degree and an MBA in finance. However, after a few years, I realized that it wasn't what I envisioned, and I wasn't passionate about it. So, I took up my father's offer to join him.
He cofounded 7-Eleven Philippines 10 years earlier and brought me on to go from 40 stores to 100, so his investors could launch an IPO [initial public offering]. We hit our goal of 100 stores and then some, but that wasn’t the end of my time in retail. I found that retailing was way more interesting than I expected. I took the legacy that my father built and continued its growth. Today, we have 4,000 stores across the Philippines.
CSNews: How do you feel your journey in the c-store industry prepared you for your role as NACS chairman?
Paterno: While most people become engaged with NACS because of advocacy, that wasn't of much interest to me. My elected leaders aren't on Capitol Hill.
Technology, on the other hand, crosses borders and has always been a passion. I originally became engaged with NACS because of TruAge, the digital age-verification system designed to make the purchase of age-restricted products safer, smarter and faster. But TruAge is just one part of a much more complex digital ecosystem that includes digital coupons and a host of other applications.
CSNews: What accomplishments stand out from your year as NACS chairman?
Paterno: It's important to note that chairmen don't specifically roll out platforms and initiatives specific to their year. NACS' digital initiative was put together by staff and backed by the Executive Committee long before my tenure. I just thought it was the most exciting thing and the one I was best positioned to help out on, since we've done similar efforts in the Philippines.
I will, of course, continue to actively support this effort as a member of the Executive Committee for the next couple of years.
CSNews: What advice do you have for your successor?
Paterno: By the time you become NACS chairman, you're very familiar with NACS. The chairmanship follows a lot of time serving on committees and later the Board of Directors and Executive Committee. You get to know the other NACS-elected leaders very well, and you get to know NACS very well. So, it's not like there are secrets and insights that chairmen pass on down. In fact, more likely you're passing along pretty tactical thoughts related to logistics. I'm always happy to help with advice, but the people who become NACS chairmen are very well prepared for the position.
CSNews: How would you describe the future of the convenience store industry? What advice do you have for retailers?
Paterno: Our industry has one advantage that no other channel can replicate: We are closer to the customer than anyone else. We are closer proximity-wise, of course, with one store per every 2,000 people — and as tech giants in the U.S. and elsewhere have shown, you can't just muscle into this space no matter how much capital you have.
But what I really mean by proximity is the relationship that we have with customers on a daily basis. We see them more than anyone else. Everyone wants a piece of this, including the tech companies. They don't have it, and we need to continue to cultivate these relationships that have enormous value. Our industry should benefit from the monetization of these relationships that technology allows. There is no reason to give this right of way away, and TruAge continues to be our best and biggest hope of making this happen.
Philippine Seven Corp., also known as 7-Eleven Philippines, has 4,000 stores operating on the main island of Luzon, of which 54% are franchised.
Aside from his tenure as NACS chairman, Paterno currently serves on the board of trustees and is the director for foreign franchises at the Philippine Franchise Association. He is a past member of the NACS Coca-Cola Retailing Research Council.
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