To Begin With
7-Eleven, the world’s largest convenience store chain, and India’s Future Group have announced a partnership where the Kishore Biyani-owned retail company will open and manage the global eponymous brand stores as a master franchisee. It aspires to tap one of the fastest-growing retail markets in the world. The expansion also marked 7-Eleven Inc’s foray into the Indian organised retailing industry.
Get to Know 7-Eleven
7-Eleven is the world’s largest convenience store chain, starting in the US in 1927 and operates 66,000 stores in 17 countries. The Japanese-owned, US-headquartered 7-Eleven at a group level, clocked nearly $100 billion in annual sales last year from over 67,000 7-Eleven stores among other retail formats. The global retailer generates nearly a third of its sales from Japan that has over 20,700 stores, followed by Thailand and the US which has another 11,000 and about 10,300 doors. 7-Eleven Inc is among the most iconic global brands in the food retail landscape.
Indian Operation With Maiden Store in Mumbai
The global brand, 7-Eleven is brought to India through Master Franchise Route. The new master franchise plans to build new stores as well as convert existing stores to the 7-Eleven brands. Future Retail’s subsidiary, SHME Food Brands, will open their small format stores starting with Mumbai this year. The Future Group will be paying the Japanese Brand royalty for use of their brand name, proprietary equipment and technology support among other things. The agreement is for 30 years. Though majority of 7-Eleven stores across the globe is open 24*7, however, the Indian convenience store will not be able to keep all its outlets open round-the-clock as regulations (barring in a couple of states) do not permit the same.
What is in Stock For Mumbai
Typically, 7-Eleven stores sell globally popular products, beverages, snacks and ready-to-eat food products. It will stock fresh food, over-the-counter products, numerous category around beverages, chocolates, confectionary, ice-creams, and premium tobacco. Additionally, recipes developed for local tastes are also part of the offerings at these stores. With cafe also being part of the stores, breakfast, lunch and dinner will be in the offing for customers at affordable prices. This (7-Eleven) is more about fresh food and that (Easyday and Nilgiris )displays ingredients which goes into your homes. Easyday and Nilgiris sells grocery, home and personal care. A lot of fresh products in the sipping, munching, confectionery, tobacco categories will be avialble. Several Future Consumer portfolio products will be added. Future Group’s partner firms will enjoy presence in these stores. For instance, their dairy brand, Fonterra will start around June-July this year. Similarly, the chips from their snacking business will start coming in the market as all the factories are up and operational now. Mumbai, you seem to be spoilt for options!!!!
India is expected to see a good response for 7-Eleven
especially in metros, Tier-I and Tier-II where the initial leg of expansion
will happen. This gives Future Retail an additional revenue basket and should
also be beneficial for Future Consumer since its products will have larger and
wider touch points