TL;DR
7-Eleven failed to establish a presence in Indonesia, shuttering all locations in 2017 due to low sales and competition from local convenience stores. The brand had grown to 190 locations in 2014, but poor sales and regulatory issues led to its exit from the country.
There are over 60,000 7-Eleven locations across the world, but exactly zero in Indonesia. In a recent feature, CNBC explored the brand’s rise and fall in the country, identifying the key contributing factors leading to 7-Eleven’s eventual shuttering of all of its locations in the country in 2017.
7-Eleven got its start in Indonesia in 2009, with a multi-unit rollout run by a local operator. Whereas in America, the brand is known as a to-go convenience spot, it became a local hangout in Indonesia thanks to its fresh local food offering and the fact it served alcohol. The brand grew to 100 locations in 2012 and up to 190 in 2014, but while its stores were crowded, people weren't spending money there.
These poor sales combined with intense competition from Indonesian convenience store counterparts, lack of geographic reach from only finding footing in Jakarta and regulatory issues stemming from Indonesia’s alcohol sales ban that was implemented in 2015 all led to the brand exiting the country in 2017.
In this story
This story was originally published in 1851 Franchise on November 6, 2018. Burnaze summarizes and links to the original reporting.
Read the full story at 1851 FranchiseLiked this? Get the week's franchise news, explained
- Sunday 8 AM ET weekly + a monthly deep dive
- Sections picked for the industries you follow
- Every claim linked to its source. Free.
