Indonesia: Promise and Pitfalls for 7-Eleven (Nikkei Asian Review)

There’s a lengthy article in the Nikkei Asian Review about the success and challenges faced by 7-Eleven in Indonesia which began by noting:

7-Eleven is not your typical “grab and go” convenience store. It is more like a cafe: Customers sit at tables, eating packaged meals and sipping Slurpee frozen drinks. The store has air conditioning and free Wi-Fi. Open 24 hours a day, every day, 7-Eleven shops have become a favorite haunt for young Indonesians after school or work.

The first 7-Eleven opened in 2009 and today there are 176 outlets in the country. With a second kitchen opening, master franchise holder Modern Putra Indonesia will be able to open up to 90 7-Elevens in 2015 compared with this year’s target of 50 stores.

However, future success is not guaranteed as local authorities, who also have to deal with traffic congestion, have held back on issuing more permits while rival chains such as Lawson have been forced to close stores in some areas after complaints that they were operating without authorization. Moreover, newly elected President Joko Widodo is known as a strong supporter of traditional markets while the legal status of 7-Eleven has became the subject of controversy precisely because its business blurs the lines between retailing and food service.

To read the whole article, Indonesia holds promise, pitfalls for 7-Eleven, go to the website of the Nikkei Asian Review.

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