Convenience store chain 7-Eleven is holding advanced talks with India’s Future Group to enter the territory.
The parties may announce an agreement to launch a network of 7-Eleven India stores next month, according to inside reports. Future Group would operate small format stores as a master franchisee, with a focus on food retailing.
The partnership is expected to help Future extend its reach to buyers beyond its own existing store network.
“Future Group has a number of neighbourhood stores through their own format launches and through acquisitions”, observed Devangshu Dutta, CEO at consultancy firm Third Eyesight. “Some of them could surely be repurposed to 7-Eleven convenience stores, while there could be other franchisees appointed for specific sites or territories,” he told The Economic Times of India.
“However, becoming a franchisee entails costs and restrictions. The question is whether there is enough margin available in the business to allow for so many tiers of stakeholders.”
7-Eleven India potential partner Future Group runs 1,444 stores in 409 cities, specializing in food and grocery retailing.
Inside Retail Asia