Future Retail disclosed earlier this week that the company’s deal with 7-Eleven Inc., which included the development and augmentation of the operations of the US chain’s convenience in India, was dismissed on a mutual decision
Convenience stores chain, 7-Eleven Inc. has reportedly signed an agreement with Reliance Retail Limited (RRL) with the view of launching convenience stores in India. This incident took places a few days after the Future Group terminated its partnership with the Texas-based chain.
India will witness the first-ever launch of 7-Eleven store on October 9, 2021, in Andheri, Mumbai as unveiled by RRL. It is also brought into notice that the company will further introduce more stores mainly in key neighborhoods and commercially-centered areas in the Greater Mumbai.
The up-to-the-minute deal is signed by Reliance Retail led by Reliance Group’s Mukesh Ambani in order to spur the its retail as well as e-commerce business operations, giving neck-and-neck competition to retail giants including Amazon, Walmart-owned Flipkart which serves a trillion dollar retail marketplace in India.
7-Eleven Inc. President and CEO (Chief Executive Officer) Joe DePinto shared on the agreement that India is the second largest country in the world and is considered as one of the fastest growing economies. He added that it is the perfect time and opportunity make an entrance in the Indian retail marketplace.
Reliance Retail Ventures Director Isha Ambani said, “At Reliance, we pride ourselves in offering in offering the best to our customers and we are proud to bring 7-Eleven, the globally trusted convenience store, to India.”
Future Retail disclosed earlier this week that the company’s deal with 7-Eleven Inc., which included the development and augmentation of the operations of the US chain’s convenience in India, was dismissed on a mutual decision as a result of the gap as the company could not meet the targets of opening stores and franchisee-fee payments.
Future Group earlier agreed to sell the assets of its Future Retail subsidiary to RIL. However, the deal was hurdled after it was challenged by Amazon. The retail establishment is the second-largest retailer having more than 1,700 stores including well recognized supermarkets such as Big Bazar and local stores. The company said it would perhaps be witnessing significant damages in case transaction regarding the deal does not take place. It was unveiled from retailer’s annual report that the unit established to operate 7-Eleven stores had witnessed a loss of bulk 173 million rupees without opening any stores.