TOKYO -- Japanese retailer Seven & i Holdings said Monday that all 7-Eleven stores in India, operated under a franchise agreement with the retail arm of local conglomerate Reliance Industries, had closed as of the end of September.

Seven & i struck a franchise deal with Reliance Retail in 2021 to operate the convenience store brand in India, but the shops have struggled to turn a profit due to intensifying competition from local retailers and fast-growing quick commerce platforms. With all 31 outlets now shuttered, the five-year-old partnership is expected to end.

dia, small neighborhood shops known as kiranas have long served consumers' everyday needs, while quick-commerce platforms that offer on-demand delivery of groceries and daily essentials are expanding their reach.

Reliance at one point operated around 60 7-Eleven stores in India, but mounting competition from rival retailers made it difficult to build a profitable business.

Seven & i said it will continue to explore "various options" for developing its business in India from a long-term perspective after the franchise agreement with Reliance ends.

Before partnering with Reliance, Seven & i had planned to enter India with Future Group, a major Indian retailer. But the deal was terminated in 2021 without a single store opening as Future Group's finances deteriorated.

Meanwhile, Lawson, another major Japanese convenience store chain, is preparing to enter the Indian market. It plans to open its first outlet in Mumbai in 2027 and expand to 100 stores by 2030. With Japan's convenience store market nearing saturation, Lawson is looking to tap demand from India's growing middle class.