The announcement was made against the backdrop of exceptional losses of NIS 68M in the food sector. Seven Eleven operates in Israel through eight branches, the first of which was launched at the beginning of 2023 in Dizengoff Center in Tel Aviv. Although the convenience store chain is considered successful worldwide, it consistently fails in Israel.
Electra was the last to receive the new franchise. The Seven Eleven chain experienced management shocks, and its CEO Avinoam Ben Muha left in August 2023. A restructuring process in the network led to a one-time accounting expense of NIS 42M.
Electra had ambitious plans for the chain, intending to open 30 branches in Israel. The failure of the Seven Eleven chain can mainly be attributed to management failures in relation to the expectations of the Electra group. However, it appears that the business model of the chain was not successful.