Mukesh Ambani, Asia’s richest man, will bring 7-Eleven Inc.’s convenience stores to India. This is adding to his burgeoning retail empire in the world’s only billion-people-plus consumer market that’s open to foreign firms.
Mr Ambani’s Reliance Retail Ltd. secured the pact just days after troubled supermarket operator Future Retail Ltd. terminated its own . They ended the agreement with one of the world’s biggest convenience chains. The first 7-Eleven store will open Saturday in a Mumbai suburb. A further “rapid rollout” will follow it . This starting across India’s financial hub. Reliance Retail said on Thursday, without providing financial details.
Reliance seizes opportunity
Meanwhile Reliance scooped the transaction after indebted Future Retail this week said it ended the agreement . Also It had inked with 7-Eleven in 2019 by mutual consent after it was unable to open the brand’s stores or pay franchisee fees. Mr Ambani is in a bitter court battle with Amazon.com Inc. for the assets of Future Retail, which is one of the biggest brick-and-mortar chains in India.
Nevertheless the move is part of the powerful tycoon’s wider ambition to seize India’s growing formalized retail space. Reliance is expanding its foothold at a rapid rate. 1,500 new stores last year were added to a total of nearly 13,000. Mukesh Ambani said at a shareholders’ meeting in June. The shares of Mukesh Ambani’s flagship Reliance Industries rose as much as 1.6% Thursday.
7- Eleven in India
“India is the second-largest country in the world . It has one of the fastest-growing economies,” 7-Eleven’s President and Chief Executive Officer Joe DePinto said in the statement. “It’s an ideal time for the largest convenience retailer in the world to make our entry into India.”
Meanwhile Daily cases are now hovering near a 7-month low and lockdown restrictions are not there across the country. As India’s vaccination drive has momentum.
Also Many foreign firms have long coveted access to India’s market of about 1.4 billion people in a country where discretionary spending in on the rise. However, they have faced considerable hurdles to entry and political opposition given the ubiquity of the kirana store, small-scale mom-and-pop shops that account for about three-quarters of India’s retail landscape.
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image credits: Wikipedia