Uncertainty Surrounds Future of 24Seven Stores: Will 7-Eleven Step In?

While there is no confirmed information yet about whether 7-Eleven, operated by Reliance Retail, will acquire the closed 24Seven stores owned by Godfrey Phillips India Ltd. However, there may be ongoing discussions. The future of the 24Seven chain remains uncertain. Established in 2005, 24Seven had nearly 145 stores operational until last week across the Delhi-National Capital Region (NCR), Punjab, and Hyderabad. These stores are now temporarily closed with notices indicating "Store closed, under renovation." They offered a range of grocery items, snacks, beverages, products from the Modi Group's Colorbar beauty brand, and personal care products. Some larger outlets also sold ready-to-eat food items.

The possibilities for acquisition, including whether 7-Eleven or another entity might step in, remain a mystery. The outcomes for stakeholders, franchisees, and employees will depend on how these developments unfold. When asked about the reason for the temporary closure of most 24Seven stores across India, Kapil Nagpal, Head of Business Development at Godfrey Phillips India Ltd., stated, “As per the Company's policy we do not comment on market speculations, misinformation & rumours. We are keeping all our stakeholders informed about our internal developments one-to-one and can not comment about our future developments right now."

As reported by a news daily in April 2024, Tata, D-Mart, and Reliance were in discussions to acquire the 24Seven stores. With multiple potential buyers exploring the opportunity, the chain’s future remains uncertain. Reliance Retail Ventures, which has been the master franchisee partner of the 7-Eleven chain in India since 2021, currently operates nearly 50 stores under this brand.

In a recent announcement, cigarette maker Godfrey Phillips India Ltd. stated that it is proceeding with plans to exit the retail business operated under the '24 Seven' brand after a district court in the Capital set aside an interim injunction on the move. Godfrey Phillips India reported that revenue from the retail business division for FY23-24 was Rs 403 crore, accounting for 7.6% of its total revenue. The retail division had a negative net worth as of March 31, 2024. The company cited stakeholder feedback, long-term performance, market conditions, and its long-term business strategy as factors in its decision to exit the retail sector.