Seven & i says all 31 Seven-Eleven stores in India closed at end of September
In short
Seven & i Holdings said on Oct. 5 that all 31 Seven-Eleven stores in India, run by local conglomerate Reliance Retail, closed at the end of September. The license contract between the two is expected to end, and Seven & i says it will consider various options for India from a long-term perspective. Japanese rival Lawson plans to open in Mumbai in 2027.
Read the full story 1 min read
Seven & i Holdings said on Oct. 5 that all 31 Seven-Eleven stores operating in India, run by a local major conglomerate, closed at the end of September. The stores were operated by Reliance Retail under a brand license agreement, and Nikkei reported that the license contract between the two companies is expected to end as a result of the closures. [ 1 , 2 , 3 ]
Seven & i signed a five-year license agreement with Reliance Retail in 2021, and the first Indian store opened in Mumbai in October that year, Yomiuri reported. Nikkei said Reliance at one point operated about 60 Seven-Eleven stores in India; Yomiuri put the figure at about 60 as of the end of last year. Competition with other retailers intensified and securing profitability became difficult, Nikkei reported, while Yomiuri said local competition was fierce and earnings were sluggish. [ 1 , 2 ]
Nikkei reported that small stores known in India as “kirana” are well established, and that quick-commerce operators delivering food and daily goods immediately are also expanding their businesses there. [ 1 ]
Seven & i said that even if the license contract with Reliance ends, it will “consider various options in order to develop its business in India from a long-term perspective.” Before the Reliance agreement, Seven had planned convenience stores with Indian retail group Future Group, but ended that contract in 2021 without opening any stores after Future's business deteriorated, Nikkei reported. [ 1 , 2 ]
Nikkei also reported that Lawson plans to enter India, aiming to open in Mumbai in 2027 and to expand to 100 stores by 2030, in an effort to tap middle-class demand in an economy expected to grow as store openings in Japan become limited. [ 1 ]
Why it matters
The closure ends Seven & i's second attempt to build a convenience-store business in India, after an earlier plan with Future Group was dropped in 2021 without any stores opening. It leaves India's convenience market to be contested by domestic small shops and quick-commerce operators, while Lawson plans to enter the same market.
Key facts
- Seven & i Holdings said all 31 Seven-Eleven stores operating in India closed at the end of September. [ 1 , 2 , 3 ]
- The stores were operated by Indian conglomerate Reliance Retail under a license agreement signed in 2021. [ 1 , 2 ]
- The first Indian store opened in Mumbai in October 2021. [ 2 ]
- At one point Reliance ran about 60 Seven-Eleven stores in India; about 60 remained at the end of last year, according to Yomiuri. [ 1 , 2 ]
- Nikkei reported that competition with other retailers made it hard to secure profitability, and Yomiuri reported profit growth was sluggish. [ 1 , 2 ]
- Seven & i said it will consider various options to develop its business in India from a long-term perspective. [ 1 , 2 ]
- Nikkei reported that Lawson plans to open in Mumbai in 2027 and to reach 100 stores by 2030. [ 1 ]
Confirmed by several sources
- Seven & i Holdings said all 31 Seven-Eleven stores in India closed at the end of September. [ 1 , 2 , 3 ]
- Seven & i signed a license agreement with Reliance Retail in 2021. [ 1 , 2 ]
- Seven & i said it will consider various options to keep developing its business in India from a long-term perspective. [ 1 , 2 ]
- Weak store performance and intense competition were factors behind the closures, as reported by the outlets. [ 1 , 2 ]
Still unclear
- Whether the license contract with Reliance Retail has formally ended. Nikkei reported the contract is expected to end following the closures; no document says the contract has already been terminated.
- The exact peak number of stores. Nikkei says Reliance at one point ran about 60 stores, while Yomiuri says there were about 60 at the end of last year; the documents do not reconcile the two figures.
- Whether and how Seven & i will re-enter the Indian market. The company said only that it is considering various options; no specific plan is given.
What local media are saying
Timeline, local time
- Nikkei reports that Seven & i said all 31 Seven-Eleven stores in India closed at the end of September and that the Reliance Retail license is expected to end. [ 1 ]
- Yomiuri reports the same closure, adding that the 2021 contract was for five years and that the first store opened in Mumbai in October 2021. [ 2 ]
- Yahoo! News Japan carries the Yomiuri report on the closure of all 31 stores. [ 3 ]