The world’s largest convenience store chain, 7-Eleven, is registering in India with Reliance Retail. Reliance said it had entered into a Master Franchise Agreement with 7-Eleven to run convenience stores in India. The first 7-Eleven store is ready to open on Saturday in Andheri East in Mumbai.
Reliance is already India’s biggest retailer, and it’s now bringing on a global giant to Indian shores.
The world’s biggest convenience store chain, 7-Eleven, is entering India in partnership with Reliance Retail.
Reliance said it had entered into a Master Franchise Agreement with 7-Eleven to run convenience stores in India.
The first 7-Eleven store will open on Saturday in Andheri East in Mumbai. A rapid rollout will follow the launch of the first store in crucial neighborhoods and commercial areas across the Greater Mumbai cluster to start, the companies said.
“At Reliance, we pride ourselves in offering the best to our customers, and we are proud to bring 7-Eleven, the globally trusted convenience store, to India,” said Isha Ambani, director, Reliance Retail Ventures Limited.
“India is the second-biggest country in the world and has one of the fastest-growing economies,” said 7-Eleven CEO Joe DePinto. “It’s an ideal time for the biggest convenience retailer in the world to make our entry into India,” he added.
Not that this is the first time that 7-Eleven has planned to come to India. In 2019, 7-Eleven had entered a partnership with the Future Group to open its stores in India.
But the Future Group ran into rough weather soon after with spiraling debts, and the collaboration never materialized.
In August last year, Reliance had acquired the retail arm of the Future Group, and 7-Eleven’s deal with the Future Group has likely passed on to Reliance as a result.
Reliance Retail partners 7-Eleven days after Future backs out
Days after Kishore Biyani’s Future Group terminated its agreement with 7-Eleven, Reliance Retail Ventures, Mukesh Ambani-led conglomerate Reliance Industries (RIL), struck a deal with the Texas-based convenience store chain to launch its stores across India.
The first store of 7-Eleven, one of the world’s largest convenience store chains, will open on Saturday in a Mumbai suburb, said Reliance Retail on Thursday, followed by a rapid rollout across India’s financial capital.
In contrast, the contours of the deal do not have any disclosure yet. This move will pit 7-Eleven against the likes of Samir Modi-led Twenty-Four Seven and In&Out.
“With the tie-up, Reliance Retail will further strengthen its presence in the convenience stores segment,” said Naveen Malpani, partner and consumer sector leader Grant Thornton Bharat.
“With 7- Eleven’s expertise in the convenience store segment, it will give Reliance Retail a strong presence in the grocery segment and can be utilized as a good launchpad for their private labels as well.”
Who will they face as competition?
7-Eleven labeled stores operate as round-the-clock convenience stores. The chain operates, franchises, and licenses more than 77,000 stores in 18 countries and regions, including 16,000 North America.
In India, Modi Enterprises-run 24 Seven chains of convenience stores manage in this format. Unlike other chief economies, India has not witnessed the big box store concept widely, given that Indian rules prohibit foreign funding in multi-brand Retail.
The termination of the contract between Future Retail and 7-Eleven
Future Retail had entered into a master franchise agreement with 7-Eleven back in February 2019.
In a stock exchange filing on Tuesday, the Company said: “The termination has been with mutual consent as the Future-7 was not able to meet the target of opening stores and payment of franchise costs. No business impact on the Company as this plan was at subsidiary company level”.
Future7-India Convenience Ltd was the wholly-owned subsidiary of Future Retail that agreed with 7-Eleven.
The Future Group had decided to sell its retail assets to Reliance Retail last year.
