Convenience store chain 7-Eleven, which has touched the 50-store-milestone in India, plans to aggressively expand in more cities over the next few years, sources have told FE.
The US-headquartered, Japanese-owned chain plans to reach the 100-store-mark in the next couple of years and plans to tap more cities. The 50th store was launched in Pune last week at World Trade Centre in Kharadi.
“The 50th store… marks an important milestone in 7-Eleven India’s journey towards becoming the most preferred brand for convenience needs of the customers. By offering a wide product range covering daily essentials to fresh food offerings like pizza, burger, sandwiches, coffee and more, the brand has caught the imagination of young India,” a 7-Eleven India spokesperson said in response to a mail.
In a LinkedIn post last week, Hardeep Singh, chief executive officer of 7-Eleven India, said the company is committed towards growth in the country. “The team’s laser sharp focus and hard work has ensured that we are able to achieve our business goal of rapid expansion. As our footprint grows, our commitment to delight every customer stays at the centre of what we do,” Singh said.
Globally, 7-Eleven is among the largest convenience store chains, with 85,000 stores across 20 countries. It generates nearly a third of its $81-billion revenue from Asian markets and has been eying a bigger presence in India, according to industry experts.
India has a handful of local players in the modern convenience format such as Modi Enterprises-owned Twenty Four Seven, RJ Corp-owned J-Mart, and In&Out. On a broader level, neighbourhood retail is typically taken care of by mom-and-pop stores or kirana shops, according to market research agency NielsenIQ. The market researcher estimates that there are over 12 million kirana shops in India, with a higher proportion in semi-urban and rural areas.
“The modern convenience store format is an emerging retail concept in India. It works well where the footfall density is high and consumption is on-the-go, especially in urban areas,” says Harminder Sahni, founder and MD of Gurugram-based consultancy Wazir Advisors.
Founded as an icehouse storefront in Dallas, Texas, in 1927, the Japanese conglomerate Seven and I Holdings took over the company over three decades ago and has been operating stores around the world through Seven-Eleven Japan.
The chain offers one-stop convenience to consumers, providing ready-to-eat food, beverages, and daily essentials at affordable prices. The brand inked a master franchise agreement with Future Group in February 2019 to develop and operate 7-Eleven stores here. That deal was terminated in October 2021. Later that year, 7-Eleven signed a master franchise agreement with Reliance Retail to launch stores in India.