Reliance Retail Ventures, the retail branch of Mukesh Ambani-led conglomerate Reliance Industries (RIL), has secured a contract with the Texas-based convenience store chain to establish its outlets across India within some days after Kishore Biyani’s Future Group called off its partnership with 7-Eleven.
7-Eleven, one of the world’s largest convenience store chains, will likely debut with its store in a Mumbai neighbourhood on Saturday, according to Reliance Retail. Following that, a fast deployment across India’s financial capital will take place.
While the contours of the deals are still under wraps, this move set the fielding against the 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 to TOI. “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 utilised as a good launchpad for their own private labels as well.”
Future Retail had entered into a master franchisee deal with 7-Eleven in 2019 to develop and run the latter’s shops in India. Future Retail is embroiled in a legal battle against US retailer Amazon over its proposed asset sale to Reliance Retail for roughly Rs 24,700 crore.
The parent company of Big Bazaar terminated the relationship earlier this week because it was unable to pay the franchise fees and satisfy the shop opening deadline.
“It’s an ideal time for the largest convenience retailer in the world to make entry into India,” said Joe DePinto, president and CEO at SEI.
Reliance Retail has been expanding at a higher rate and in the last year, it has added 1,500 new stores in its kitty, bringing the total tally to 13,000.
“It’s a very good decision for Reliance. 7-Eleven has been one of the most successful retail concepts for several decades,” said Arvind Singhal, founder of retail consultancy Technopak to TOI. “Several foreign retailers have left India, but since partnerships with Reliance have worked well, this will provide a lot of reassurance to other foreign retailers waiting on the fence to enter India.”