International convenience chain 7-Eleven could rebuild its presence in the UK as its parent company Seven & I Holdings looks to further expand into Europe.
During Seven & I Holdings’ investor relations day last week, presentations showed that the c-store operator has plans to enter 10 new countries by 2030 with Europe a ‘top priority’, Better Retailing reported.
In the 1980’s 7-Eleven had more than 50 UK stores, however these were sold in 1997 when the firm exited the market.
The presentation is believes to have shown how the convenience retailer can gain a footing in new countries, such as the UK.
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For the European expansion, the retailer presented two models: a master franchise and a joint venture or acquisition.
The master franchise agreement would see Seven & I Holdings have ‘no direct involvement’ other than consultation and logistical support. It would receive revenue through royalty payments.
The joint ventures and acquisition model would see ‘direct participation’ from the partner firm, and it would move global staff into the new countries to help launch the brand.
This model would give Seven & I a higher income via revenues from stores and dividends.
