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Future Group calls it quits on 7-Eleven India plans

By Aiko TanakaIndia
1 min read
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In this article (5)

7-Eleven Inc and Future Retail have ended their agreement to operate convenience stores in India just two years after it was signed.

Reuters reports that the two companies arrived at a mutual decision to end the relationship, with Future Group failing to meet store rollout targets and the payment of franchise fees.

The original deal was revealed in February 2019 and in December that year Future Group founder and CEO Kishore Biyani said the firm would concentrate on development in Mumbai only for the initial few years of business, with the first outlets launching in March 2020.

He said the company planned to open 1000 7-Eleven stores in the city before moving out into other regions of the country after two to three years.

However Indian news sources reported last year that the impact of the Covid-19 pandemic had delayed the implementation of the franchise agreement.

In a statement, Future Group said the termination would have no financial or business impact on the company.

Questions & Answers

Q.

Why did 7-Eleven Inc and Future Retail decide to end their agreement?

A.

The two companies mutually decided to terminate their relationship. Future Group reportedly failed to meet the agreed store rollout targets and did not make the required payments for franchise fees.

Q.

What were Future Group's initial plans for 7-Eleven stores in India?

A.

Future Group founder Kishore Biyani stated plans to open 1,000 7-Eleven stores in Mumbai initially, before expanding to other regions after two to three years. The first outlets were expected to launch in March 2020.

Q.

How did the Covid-19 pandemic affect Future Group's 7-Eleven plans?

A.

Indian news sources reported that the Covid-19 pandemic caused delays in the implementation of the franchise agreement. This impact contributed to Future Group not meeting its rollout targets.

Q.

Will this termination financially impact Future Group?

A.

Future Group issued a statement indicating that the termination of the 7-Eleven agreement will have no financial or business impact on the company. The reasons for this assurance are not detailed in the article.

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