The world’s largest convenience store chain 7-Eleven Inc. is coming to India. It has signed a master franchise agreement with a unit of Kishore Biyani-owned Future Retail in this regard on Thursday.
The Irving, Texas-based 7-Eleven currently operates 67,000 stores across 17 countries. Key markets include Japan, where it has 20,733 outlets, in Thailand there are 11,026 stores, in South Korea it has 9,450 outlets and in its home country US, there 9,350 7-Elevens. Other markets, where the retailer is present include Australia, Singapore, Malaysia, Philippines, Taiwan, China, Sweden, Norway, Denmark, Canada and Mexico.
This is the first time that the company is coming to India and the first store is expected to open later this year. Future Retail, the master franchisee, plans to build new 7-Eleven stores as well as convert some of its existing locations to the 7-Eleven brand. The entry of 7-Eleven will modernise the small neighbourhood retail environment, while also bringing in greater convenience for shoppers in India.
“This strategic relationship offers an excellent opportunity to bring 7-Eleven’s brand of convenience and its iconic products to the Indian consumer,” said Ken Wakabayashi, international head at 7-Eleven.
Internationally popular products, beverages, snacks and immediately consumable fresh foods with recipes developed for local tastes will be part of the initial convenience offering in the 7-Eleven stores in India.
“7-Eleven is among the most iconic global brands in the food retail landscape. We are proud to bring this globally trusted convenience store to India and build new pathways together that will offer Indian customers greater convenience and choices, within their own neighbourhood,” said Kishore Biyani, Future Group’s founder and group CEO.
The company will support Future Retail to implement and localise the 7-Eleven business model here in India.
It began life as Southland Ice Company back in 1927. The name changed to 7-Eleven in 1946, when the stores started operating from 7am to 11pm. In 1962, it became the first convenience store to operate 24/7.
Kishore Biyani has been rapidly expanding his retail and consumer goods empire over the last few years. Over 2014-15, Future Group had acquired the Nilgiris grocery chain and Mittal’s owned Bharti Retail. In 2016, it had acquired the retail business of Heritage Foods, which is promoted by the family of Andhra Pradesh Chief Minister N. Chandrababu Naidu.
In August last year, New Zealand-based Fonterra, the world’s largest dairy exporter, announced a joint venture with Biyani’s FMCG arm, Future Consumer, to enter India.
Future Retail’s shares closed 3.6 per cent at Rs 423.95 on the BSE on Thursday.
