PT Modern Internasional, which currently operates all 7-Eleven convenience stores in Indonesia, has revealed that all the outlets will be closed from 30 June 2017 onwards. This comes eight years after its first landing in Jakarta, Indonesia. According to Seven & i Holdings, the parent company of the global 7-Eleven brand, there were 116 outlets in Indonesia as of March 2017.
In a statement to Reuters, a spokesperson for Seven & i Holdings said that the search for a new operator to take on the franchise is still in motion. The spokesperson added that it will look to start the business again as Indonesia is an important country for the company. The closure however, had little impact on its financial results.
According to multiple news reports, several reasons were cited for the closure, including a ban on alcohol sales as well as low profit margins. Modern Internasional also reported a 24% drop in net sales in 2016, compared to a year earlier, according to a Reuters report. Meanwhile, a Jakarta Post report noted that alcohol sales was responsible for around 10% of total sales of 7-Eleven stores.
Marketing has reached out to PT Modern Internasional and Seven & i Holdings for comment.
The pull out of a major potential investor looking to acquire the business was also a factor, according to multiple news reports. PT Modern Nasional unveiled earlier in the month that its decision to sell the franchise to PT Charoen Pokphand Restu Indonesia fell through.
7-Eleven is currently being operated by Dairy Farm International in Singapore, and by Berjaya Retail in Malaysia.