Reliance Retail, 7-Eleven end 5-yr India deal

Mumbai: Reliance Retail and 7-Eleven are ending their five-year franchisee deal in India, closing most of the nearly 60 convenience stores they operated under the partnership, after struggling to make the format profitable, people familiar with the matter said.A handful of outlets are clearing the inventory before shutting, they said. 7-Eleven may look for another Indian partner to keep a foothold in the market, although no decision has been made, the people said.The exit highlights an unusual squeeze that convenience stores are facing in India, with millions of small kirana stores that have long served consumers' immediate needs on one side and quick-commerce companies that are bringing the same snacks, groceries and daily essentials to doorsteps within minutes on the other.134679627Reliance and 7-Eleven did not respond to ET's queries.The partnership, struck in 2021, was intended to bring the world's largest convenience-store chain to India through Reliance's retail network. But the business struggled to achieve the scale needed to offset the relatively high costs of running branded stores.The 7-India Convenience Retail venture reported revenue of about ₹92 crore ($10.6 million) and a net loss of nearly ₹90 crore in the year ended March 2026, according to its financial statements."Reliance wants to reach consumers across every channel, but sustainability ultimately matters. Convenience stores have faced increasing pressure from quick commerce since the pandemic, with both formats offering similar assortments and serving the same immediate-needs occasions," said Devangshu Dutta, founder and CEO of Third Eyesight, a consumer-sector consultancy."Kiranas operate with far lower overheads and different margin expectations than corporate-run convenience stores. Reliance's exit could therefore signal a broader rethink of the format, particularly in markets where quick commerce has become a strong alternative."Globally convenience stores have become powerful retail businesses in several markets despite the expansion of supermarkets and hypermarkets. 7-Eleven in Japan, Taiwan, Thailand and Singapore; Lawson in Japan and Oxxo in Mexico are among the largest retailers in their respective markets.7-Eleven's Japanese parent, Seven & i Holdings, operates more than 85,000 stores globally, making it one of the world's largest retail networks. Yet the company has been restructuring its overseas operations and closing stores in North America as consumer behaviour and store economics change.In India, however, organised convenience retail has struggled to replicate the success seen in other Asian and emerging markets. EasyDay, More and Spencer's have either shut stores or shrank their smaller-format networks over the years, underscoring the difficulty of building profitable neighbourhood stores at scale.Packaged consumer goods companies continue to derive roughly three-fourths of their sales from small neighbourhood stores, underlining the strength of the traditional distribution network. Quick commerce platforms are, meanwhile, expanding rapidly.That makes it difficult for organised convenience stores to charge a premium or generate sufficient sales density to cover higher rents, staffing, inventory and logistics costs.Convenience retail works best when operators achieve high store density and productivity, supported by strong supply chains and differentiated offerings such as fresh food and private labels.Reliance initially expanded the 7-Eleven network in Mumbai and other markets, but the footprint remained small compared with the company's wider retail operations.