Rapid launch of convenience chain into Mumbai.
Looking to tap into potential gaps in the grocery retail sector
Earlier in March, we reported on the master franchise agreement between the Future Group and 7-Eleven, paving the way for 7-Eleven stores to begin operations in India. This was quickly followed up with the Group’s announcement of the 7-Eleven India CEO a month later.
Now, Future Group has announced that it is planning up to 500 stores, all located within Mumbai over the next three to five years. The convenience chain is targeting the kirana segment, positioning itself as a cleaner, more convenient and affordable alternative to the mom-and-pop stores.
Meeting the needs of the aspirational Indian shopper
Mr. Hardeep Singh, CEO of Future 7-Eleven India Convenience said, “We believe there's a large white space available when you talk about the world-class convenience across fresh food and grocery. Yes, there are kirana stores, but we believe that they have not been able to live up to the expectations of aspirational Indians. In the same way, there is very tasty and affordable street food, but by no stretch of imagination it can be called hygienic. Through our format, we believe we can bring together convenience, hygiene, affordability and taste."
Singh also shared some details of the upcoming stores. Two or three prototype stores of different sizes will stock a full assortment of snacks, hot and cold drinks and food-to-go options. Larger stores will also have a seating area similar to 7-Eleven stores in other countries.
At present, there are no plans to expand outside of Mumbai as the partnership seeks to perfect its model within Mumbai first. However, it is expected that the larger cities of New Delhi, Bengaluru and Chennai would be priorities in any expansion plans.
Find out more information about Future Retail here and Seven & i Holdings here.
Retail Analysis Asia