Charoen Pokphand to operate 7-Eleven Indonesia

Date : 25 April 2017

Charoen Pokphand (CP) will acquire Modern Sevel, the controlling company of the 7-Eleven Indonesia convenience store outlets for IDR one trillion (US$75 million). CP Indonesia, a division of Thai conglomerate CP Group expects to complete the purchase by June this year.

Indonesia's retail regulation driving key decisions

Indonesia's retail landscape is highly completive, but heavily shaped by regulation. In 2015, alcohol sales at small retail stores were banned in Jakarta. This had impacted sales for Modern International, the parent firm of Modern Sevel, and partially attributed to losses for both group and 7-Eleven [Indonesia] network in recent years.

Charoen Pokphand's presence increasing

CP Indonesia will look to quickly negate the losses at 7-Eleven and use the takeover for support for their existing business, and explore potential opportunities within distribution. The CP Group already runs the 7-Eleven trademark in Thailand covering over 9500 stores. This acquisition will increase CP's global footprint as they begin to operate 175 7-Eleven outlets in Indonesia.