What are the reasons behind the failure of 7-Eleven in Indonesia?

What are the reasons behind the failure of 7-Eleven in Indonesia?

The downfall of 7 Eleven in Indonesia can be pinpointed in 2015, with the government banning the sale of alcohol in mini-marts. This exercise was taken in order to “protect Indonesia’s youth” – the exact target market 7-Eleven’s growth relied on. Just 2 years after the ban, 7-Eleven closed all it’s stores.

How many 711 are there in Indonesia?

There were 190 7-Eleven stores in Indonesia as of 2014 which then reduced to only 166 stores in September 2016.

IS 711 in other countries?

Other countries and regions include the United States, Canada, Mexico, Japan, Thailand, South Korea, Taiwan, China (including Hong Kong), the Philippines, Australia, Singapore, Malaysia, Viet Nam, United Arab Emirates, Norway, Sweden, Denmark, India and Cambodia.

Why did Walmart fail in Indonesia?

The main reason for Walmart’s failure in Indonesia was that consumers took advantage of the 30-day return policy. As a result, sales were always low, and residents in Indonesia did not have high purchasing power like people in the USA.

Is there a Walmart in Indonesia?

Wal-Mart opened its first store in Indonesia in 1996 and left the country two years later after its Jakarta store was torched in the 1998 riots. The company considered reentering Indonesia in 2010, but the deal was never done.

Are there any 7 Eleven stores in Indonesia?

What failed was a plan to attract repeat customers willing to spend money. Eight years after the chain’s first Jakarta store opened, PT Modern Internasional Tbk, the owner of the 7-Eleven master franchise in Indonesia, is closing all its domestic outlets, which totaled 161 at the end of 2016.

Why did all 7 elevens in Jakarta suddenly disappear?

The publicly listed PT Modern Internasional, ­7-Eleven’s franchise holder in the country, said in its statement to Jakarta’s bourse that a lack of resources was the main reason it ceased operations at all 7-Eleven outlets permanently as of June 30.

Why did Charoen Pokphand Indonesia buy 7 Eleven?

Charoen Pokphand Indonesia’s plan to acquire the local operator of 7-Eleven convenience stores, Modern Sevel Indonesia, had ended “due to non-agreement of the parties concerned.”

What’s the GDP of 7-Eleven in Indonesia?

Indonesia was a growing economy with a GDP of $888.5 billion. The income level of Indonesians were on a rise which could be seen by the increasing number of middle class people. 7-Eleven was eagerly interest to target young population because of their love for hanging out.