After mediocre performance and alleged fears of pro-Palestinian protests, 7-Eleven in Israel has been sold.
Seven Express, an Israeli company, purchased the 7-Eleven stores from Electra Consumer Products for 3.36 million shekels. Electra Consumer Products reported an operational loss of 37.8 million shekels from the franchise.
Electra had been searching for a buyer for the 7-Eleven operations for some time. Initially, Seven Express wanted to become a franchisee but was eventually persuaded to purchase the chain outright, pending antitrust review.
In its first-quarter report, Electra stated that Electra Convenience Stores, a subsidiary, "will sell Seven Express the eight stores it operates in Israel, including the lease agreements, equipment and inventory, thus ending its operation of 7-Eleven in Israel." The report also mentioned that "the branches will operate under the buyer's format."
This suggests that the 7-Eleven brand might be discontinued in Israel, though a final decision has not yet been made. Since 7-Eleven does not sell many imported or branded items in Israel, maintaining the brand is feasible, but the decision rests with Saban Express.
The report further noted that "due to the ongoing negotiations with the international company and the sale transaction, from the second quarter of 2024, the company may present 7-Eleven's operations as discontinued."
The first 7-Eleven stores opened in Tel Aviv, but the outbreak of war severely impacted the city, with fewer patrons and more people mobilized for military service. It is alleged that 7-Eleven showed little empathy for these difficulties, reportedly taking steps to reduce and conceal its presence in Israel. The chain canceled its local representation and froze plans to open more stores until the end of the conflict, avoiding publicity, apparently to reduce its visibility and avert anti-Israel protests.
International chains often face anti-Israel protests around the world, and there is concern about associating global brands with Israel. For example, Delta opened Victoria’s Secret and Bath & Body Works stores in Israel without any advertising. There was global concern over McDonald’s Israel support for soldiers, and social media hashtags called for boycotting international brands operating in Israel or remaining silent about the war in Gaza. Conversely, there is also a mild fear of Israeli protests against Spanish brand Zara due to Spain’s one-sided policy against Israel.
Electra Consumer Products, one of Israel's largest retail groups, prefers to focus on its existing chains and launch a credit card after 7-Eleven’s failure. 7-Eleven stores generated 2 million shekels in revenue per quarter, while Electra's total retail division, which includes 92 Carrefour stores that turned profitable in Q3 2023, reported sales of 1.7 billion shekels per quarter, a 20% growth. One Carrefour store generates the revenue of 30 7-Eleven stores combined.
Electra Consumer Products presented successful reports this on Wednesday with a 50% increase in sales at Machsanei Hashmal, a 30% rise at Carrefour, 27% at Adidas, and 17% at Columbia and Shvilim and Outsiders stores.
Seven Express is a network of 113 convenience stores owned by the Selden Group, held by Udi Saada, Assaf Kamari, and Tony Ziv.