India’s Reliance Retail and Japanese convenience store chain 7-Eleven are ending their India franchise partnership, with most of the nearly 60 stores expected to close, the Economic Times reported.
Citing unnamed sources, the newspaper reported that most of the partnership’s outlets are expected to shut because the business did not become profitable.
The Japanese chain could seek an alternative domestic tie-up to maintain its Indian operations, though plans remain unfinalised.
The five-year agreement, established in 2021, was intended to roll out 7-Eleven’s model across India using Reliance’s distribution infrastructure.
However, the venture was unable to expand sufficiently to make the economics of branded convenience stores viable.
Some locations are selling their remaining goods before they close, according to the sources.
7-India Convenience Retail generated revenue of approximately Rs920m ($10.6m) and posted a net loss of nearly Rs900m for the financial year ended March 2026, based on company filings cited in the report.
The retreat illustrates the structural headwinds confronting modern convenience retail across India.
Traditional kirana shops – independent neighbourhood grocers – continue to dominate immediate-need purchases, while rapid-delivery platforms now bring everyday groceries and snacks to consumers within minutes, intensifying competition for convenience stores.
Small local shops continue to account for approximately 75% of packaged consumer goods companies’ sales.
Furthermore, the rapid growth of quick commerce has made it more difficult for physical convenience outlets to generate enough sales to cover their rental, staffing, stock and distribution expenses.
Although Reliance opened 7-Eleven outlets in Mumbai, Maharashtra, and other urban centres, the chain remained relatively small compared with Reliance’s broader retail estate.
Retail Insight Network has contacted Reliance Retail and 7-Eleven for comment.
7-Eleven's Japanese parent, Seven & i Holdings, operates more than 85,000 stores globally and has been restructuring its overseas operations, including closing stores in North America, as consumer behaviour and store economics change.
