Why 7-Eleven Failed In Indonesia

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There are more than 60,000 7-Elevens across the planet. But there is one country where the convenience store chain flopped, Indonesia. In 2017, the chain of mini markets closed all of its stores there. Here’s why 7-Eleven
failed in Indonesia. Let’s go back to 2009 when 7-Eleven got its start in the country. 7-Eleven’s Indonesian rollout was run by a local operator, PT Modern Internasional. Contrary to its American counterpart that capitalized on to-go items and late night munchies, 7-Eleven in Indonesia became a trendy hangout spot for locals. It offered traditional 7-Eleven items like slurpees and snacks but also fresh local food and alcohol.

7-Eleven was very popular with university students, really the 18 to 25 age range. It was a place for them to hang out at all hours of the day, all hours of the night. Before the alcohol ban that was imposed in 2015, this was a very popular spot to hang out, have a beer after class or after work, have free Wi-Fi, have a bite to eat. As the business took off Modern soon started to expand within the capital, Jakarta. It opened its 21st store by 2010 and it hit 100 locations in 2012. In 2014, the company hit peak sales of around 78 million with 190 stores.

Source: CNBC Channel on Youtube

4 Comments

  1. 7 eleven is not only a supermarket, but also a place to receive discussions and it really helps us and does not need to spend very much money. because food at 7 elevent is very affordable

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