Reliance Retail’s Next Spring: 7 – Eleven Stores in India; The Future Retail exit is a great business opportunity for trust

Mukesh Ambani is not the richest in Asia for nothing; he has a keen business acumen and is one of the few business people who is always on the go to make headlines and make a splash by bringing something “new” to the Indian market.

Reliance Retail Ventures (RRVL) has entered into a franchise agreement with the US-based 7 – Eleven Store. The first store of its kind will open on Saturday in Mumbai’s highly competitive Indian market.

With this, RRVL will look to a rapid “rollout” of these stores across India, the only market in the world with a consumer market of more than a billion.

Trust hits the iron when it’s hot.
Reliance might have lost on this new deal if the already indebted Future Retail hadn’t ended the deal it made with 7-Eleven in 2019. The deal was terminated and Future Retail left the company by mutual consent as the company could not honor the agreement – open the brand’s stores or pay franchise fees.
Therefore, Mukesh Ambani’s business strategy, the opportunity that arises from it, is an example of the fact that the man does not let go of much!

The largest convenience stores in the world will all open up the Indian market, even as a India’s most competitive retail chain is in court in a tough legal battle with Amazon Inc. over the assets of Future Retail, which incidentally is the largest brick-and-mortar retail chain in India.

Mukesh Ambani’s ambition
The Indian market is one of the most sought-after in the world, and that’s because overseas companies are drawn to the untapped potential of Indian markets.
India is one of the fastest growing economies in the world; The consumer base is also most ideal with a healthy proportion of young people, one of the highest levels of penetration by internet services and cell phone users.

THere’s another factor that could have driven the rapid roll-out of the first and subsequent 7-Eleven stores compared to the rest of the world, the number of Covid-19 cases have declined sharply in the country. It should also be taken into account that India is also one of the few countries in the world with the highest vaccination rate; perhaps this lull presented itself as an excellent opportunity in the Indian market and fast.

The business tycoon’s ambition to capture the county’s ever-growing formalized retail sector is known to all; Over the past year, Reliance Retail has made announcements and acquisitions from time to time that give us a glimpse into the seriousness and ambition of the market leader – Mukesh Ambani.

Reliance has rapidly expanded its position, adding 1,500 new stores to a total of nearly 13,000 stores in the last year alone.
The past few months have been pretty hectic and the markets were full of excitement as Ambani adopted both Amazon and Walmart which dominate online shopping in India. That’s why Reliance is constantly building its E-commerce JioMart platform as an effective competitor against the two brands mentioned above.

JioMart is set to generate a lot of buzz as it prepares to offer everything from electronics to apparel to pharmaceuticals and healthcare.
RRVL is a subsidiary of Reliance Industries Limited and the holding company of the Group’s retail companies, with consolidated sales of Rs.1.57 trillion and net income of Rs.5.481 billion for the year ended March 31, 2021.

The latest deal gives Reliance Retail a stronger foothold in the country’s $ 850 billion retail market. It already has stores for various categories such as apparel, food and electronics with chains such as Reliance Fresh and JioMart, Reliance Digital and Reliance Trends. Reliance Retail has over 3,500 stores. In a March report, Jefferies analysts said it is the largest retailer in the country and the only one with a presence across multiple categories.

It’s a race for the Indian markets.

The Indian market is littered with small kirana shops, and these are the go-to places for the locals in the cities.
The landscape has changed slowly but steadily, especially in the urban cities and smaller tiers – 2 cities and more and more people prefer to go to the supermarket and pick up all their needs under one roof, ambience and convenience are also at the top of the The priority list are the bigger discounts that one can benefit from.

The icing on the cake is India’s $ 850 billion retail market, which promises immense opportunities with the launch of the 7-Eleven stores; RRVL proposes to provide Indian customers with a better shopping experience and higher and more competitive value for money.

The 7-Eleven stores would offer a range of beverages, snacks, and delicatessen products that specifically cater to local tastes and daily essentials, with an emphasis on hygiene and affordability as the main offerings.

The company plans to open multiple stores across the country. With a rapid expansion plan in the near future, it is expected to make a significant contribution and boost local employment in the areas where it opens its stores.
SEI will also assist RRVL in the implementation and localization of the unique 7-Eleven convenience retail store model for India, including providing world class processes and practices.

Introduction of 7-Eleven
7-Eleven is based in Irving, Texas; it has made an important place for itself in convenience retail. It operates, franchises and / or licenses more than 77,000 stores in 18 countries and regions, including 16,000 in North America.

In addition to the 7-Eleven stores, SEI operates and sells the Speedway, Stripes, Laredo Taco Company and Raise the Roost locations.
Known for its iconic brands such as Slurpee, Big Bite and Big Gulp, SEI has expanded to include high-quality sandwiches, salads, side dishes, sliced ​​fruit and protein boxes.
Joe DePinto, CEO of SEI, the owner of 7-Eleven, said the new connection would help bring the chain “to millions of Indian consumers.”

“India is the second largest country in the world and has one of the fastest growing economies,” he said. “It is an ideal time for the largest convenience retailer in the world to make our entry.”

What makes the markets optimistic?
Analysts following the retail industry said the move was “interesting” as Reliance Retail is the largest retailer and works closely with many Kirana stores. Last year, JioMart was launched, a hyper-local retail platform that enables the retailer’s own network of branches and local stores to fulfill orders.

The retail landscape has changed and changed shape; it is ready to take on a different color, profits could be higher, and companies could make billions if they do it right.
In the end, it’s about being able to offer maximum discounts and a shopping experience that touches the convenience and novelty of shopping in these places.

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