InvestorQ : How will the introduction of the 7-Eleven stores in India by the Future Group, impact the business prospects of the company and the stock?
Dhwani Mehta made post

How will the introduction of the 7-Eleven stores in India by the Future Group, impact the business prospects of the company and the stock?

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Khushi Patel answered.
3 years ago
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The Future Group founder will soon be bringing global retail chain 7-Eleven, considered to be the world's largest convenience store chain, into India. 7-Eleven is a Japanese chain but is very common across the US, Japan and Hong Kong. To begin with, Future group will launch 7-Eleven stores only in Mumbai in the first few years. Mr. Biyani had recently announced that Future Retail had signed a master franchise agreement with 7-Eleven to develop and operate 7-Eleven stores in India. The first store is likely to go live as early as March 2020.

The plan is to set up a cluster of such 7-Eleve stores in Mumbai and according to Biyani; Mumbai alone may have the capacity to accommodate 1000 such stores across the metropolis. Japan-owned 7-Eleven has a network of over 67,000 stores the world over and this will be their first foray into India. The 7-Eleven chain typically runs small-format convenience stores that stock an assortment of fresh and packaged foods, beverages and items of daily use. The 7-Eleven chain is quite active in markets like Thailand, Malaysia, Hong Kong, Singapore, the US, South Korea and Japan.

Biyani plans to give an Indian twist to the 7-Eleven models to make it more relevant to the Indian context. The inventory is expected to include ready-to-eat Indian meals like dal-chawal, khichdi, poha, idli etc.

Future Group is among the largest retailers in India with over 1440 stores across 400 cities but in terms of profitability and valuations, D-Mart has gone way ahead. This 7-Eleven deal will pit the Future group directly in competition with D-Mart in catering to the micro household needs of the Indian consumer. If it works and also scales up rapidly, it could change the fortunes of Future Retail in the near future.

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