7-Eleven join hands with future group
7-Eleven, an international chain of convenience stores, is in advanced talks with India’s Future Group to enter one of the fastest-growing retail markets, India. If the plan moves forward, the Kishore Biyani-owned retail company will open and work on small outlet of 7-Eleven stores in India as a master franchisee. According to analysts, a partnership between the two will help Future Group reach out to buyers beyond their own outlets in the modern trade segment.
7-Eleven and Future group revenue
Seven and i Group, which owns 7-Eleven among other retail formats has total revenue of $100 billion through nearly 66,000 stores globally. 7-Eleven generates nearly a third of its sales in the Asian country. Future Group makes most of its income from food and grocery retailing. The company runs 1,444 stores in 409 cities of India. It also controls nearly a third of the country’s organised food and grocery market through the Big Bazaar, EasyDay, Nilgiris supermarket chains and other outlets. Besides that, these supermarket chains contribute 15% to their sales.
Growth of small businesses in retail market
7-Eleven, Lawson and Oxxo shops are among the largest retailers in their respective markets. These shops indicate the growth of small outlets business in several countries despite the presence of international supermarket and hypermarket chains. Since 2012, most of the large grocery retailers in the country have reduced store sizes by 13-35% to drive more profit through higher revenue per square feet. In India, smaller stores or kiranas still record for nearly 90% of the all consumer products sales.
Franchisee entails costs and restrictions
Devangshu Dutta, Chief Executive at consultancy firm Third Eyesight, stated, “Future Group has a number of neighborhood stores through their own format launches and through acquisitions.