All Indonesian 7-Eleven stores have been closed because of “limited resources” to keep them viable.
This was announced by Modern Internasional after a failed attempt to sell its Modern Sevel Indonesia convenience-store unit to a Thai group.
A month ago Modern Internasional announced it was in talks to sell Modern Sevel to an affiliate of the Bangkok conglomerate Charoen Pokphand Group.
Modern Sevel ran 161 7-Eleven outlets in Indonesia at the end of last year after pioneering the convenience stores in 2009. However, it has lately been struggling to compete with local food vendors and the rapidly growing convenience-store networks of Alfamart and Indomaret, reports Nikkei Asian Review.
Owned by Indonesia’s Honoris family, Modern Internasional also sells medical equipment and Ricoh photocopy machines. The convenience-store business accounted for about three-quarters of its total revenue of 891 billion rupiah (US$ 66.7 million) last year.