Reliance Retail Shutters 7-Eleven Stores in India After Franchise Pact Ends

New Delhi: Reliance Retail has shut down all 7-Eleven convenience stores in India following the conclusion of its five-year franchise agreement with the US-based convenience store chain, according to industry sources.

With this, the presence of the Texas-headquartered American convenience store chain came to an end in the country, sources added.

Reliance Retail, the country’s leading retailer, was operating around 60 stores under the 7-Eleven format, half of which are already closed.

Some outlets may continue to function briefly to liquidate remaining inventory before closing completely, they said.

Reliance Retail had launched 7-Eleven stores in India in October 2021 after entering into a master franchise agreement with 7-Eleven Inc for a period of five years.

Employees associated with the 7-Eleven operations are being absorbed into Reliance Retail’s broader grocery and neighbourhood retail businesses, enabling the company to retain trained manpower and operational expertise developed during the partnership.

7-Eleven is a wholly-owned subsidiary of Seven-Eleven Japan, which is operated and owned by the Japanese retail holding company Seven & i Holdings Co Ltd.

The closure of 7-Eleven stores comes as Reliance Retail sharpens focus on its core grocery and neighbourhood retail formats, including Smart Bazaar, Smart Point and JioMart, which continue to witness expansion across markets, they said.

Now Reliance Retail is increasingly prioritising investments in larger grocery formats and digital commerce platforms, where scale economics and consumer adoption have been stronger.

Quick commerce and hyperlocal delivery have also emerged as key growth areas for Reliance Retail through JioMart, reflecting changing consumer preferences towards rapid doorstep delivery of everyday essentials.

The development also highlights the challenges faced by standalone convenience store formats in India, where operators contend with high rentals, thin margins and rising operating costs, sources said.

This also highlights that the rapid growth of quick commerce platforms has further intensified competition for physical convenience stores by offering consumers faster and wider access to daily necessities without requiring store visits.

Reliance Retail has not made any official announcement regarding the closure of the 7-Eleven stores.

Earlier, 7-Eleven had partnered with Kishore Biyani-led Future Retail in 2019, which is currently going through liquidation under the Insolvency and Bankruptcy Code.

However, it was mutually terminated in 2021 after Future Retail faced financial troubles.

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