Japan’s 7-Eleven has temporarily shut all 31 of its stores in India as of late September, operated under a franchise agreement with Reliance Retail, a subsidiary of Mukesh Ambani’s Reliance Industries. Despite the closures, the Japanese company remains committed to maintaining its long-term presence in India and is actively exploring new opportunities to expand in the country. The move follows previous struggles, notably the end of an earlier partnership with Future Retail, after which the current franchise agreement with Reliance was initiated in 2021.

The 7-India Convenience Retail subsidiary has faced significant financial challenges, reporting a net loss of nearly 900 million rupees (about $9.3 million) for the fiscal year ending March 2026 against revenues of approximately 920 million rupees. Losses have increased steadily since the business began, widening from 52 million rupees in 2022. Analysts suggest that the recent store closures represent a strategic reset rather than a full exit, as India’s competitive retail and convenience store market requires a new approach to succeed.

Industry experts highlight the difficulty for small-format convenience stores in India to attract customers amid competition from larger retailers and the rapid growth of 10-minute grocery delivery apps, which provide broader product selections and more convenience. High operating costs such as rent and staffing combined with relatively low sales further compound challenges for such outlets. However, analysts believe there could still be room for innovative Japanese retailers to carve out market niches by moving away from traditional formats.

A possible alternate path could involve 7-Eleven adopting a model similar to Lawson, another Japanese convenience chain planning to open its first stores in Mumbai by 2027 using a locally managed, directly owned structure rather than a franchise. This shift could allow 7-Eleven greater control and adaptability in the Indian market, enabling better localization and scalability. Industry consultants view these developments as a reconsideration of strategy rather than abandonment of the Indian market by Japan’s convenience store giants.