Japanese convenience store chain 7-Eleven closed all 31 of its outlets in India at the end of September, according to a spokesperson who confirmed the move to CNBC. The stores were operated by Reliance Retail under a master franchise agreement signed in 2021. Despite the shutdown, 7-Eleven said it remains committed to expanding its footprint in India over the long term, signaling ongoing interest in the market.
7-Eleven initially entered India through a franchise deal with Future Retail, which ended mutually due to unmet targets for store openings and franchise fee payments. The partnership with Reliance Retail was its second attempt to establish a presence. The recent closures have raised questions about the company’s future strategy in India, but a spokesperson emphasized that the company is exploring various options to grow its presence. Analysts suggest the closures may indicate a strategic shift rather than a full exit.
The Indian convenience store sector has attracted several foreign players, including Lawson, another Japanese chain preparing to enter the market. 7-Eleven’s withdrawal from physical stores contrasts with its stated long-term ambitions and reflects challenges foreign retailers face in India’s complex retail environment. The move highlights the difficulties of scaling franchise models and adapting to local consumer preferences amid intense competition and regulatory hurdles.
7-Eleven’s decision to close all 31 stores operated by Reliance Retail marks a significant moment in its India operations. The company’s spokesperson reiterated its intent to continue exploring opportunities in the country, underscoring that the closures do not signify a complete exit from the Indian market.