In 2005, Godfrey Phillips India — the tobacco giant behind Marlboro, Four Square, Red & White, Stellar, and Cavanders — made an unusual bet outside its core business. It launched 24Seven, India’s first organised 24-hour convenience store chain, positioned as a direct answer to global players like 7-Eleven.
The Climb
For nearly two decades, the bet paid off. 24Seven scaled to more than 150 stores and kiosks across Delhi-NCR, Punjab, and Telangana, generating gross sales of around ₹484 crore, with the retail division alone reporting ₹403 crore in FY23-24. The value proposition was simple and sticky: late-night access, urban convenience, and quick availability of everyday essentials in a country where organised retail was still maturing.
The Disruption
Then, quick commerce arrived. Blinkit, Zepto, and Big Basket redefined what “convenience” actually meant — 10-minute delivery made even a 24-hour physical store feel slow by comparison. 24Seven’s core strength — physical presence — became a structural cost burden of rent, staffing, and inventory that online-first competitors didn’t bear.
The Boardroom Battle
The disruption story doesn’t tell the whole picture, though. Around the same time, Godfrey Phillips was in the middle of a bitter internal succession dispute. This dispute escalated into a court injunction in June 2024 that temporarily blocked the exit, before a Delhi court cleared the way for the sale in July 2024. The retail division reportedly had a negative net worth as of March 31, 2024, adding financial pressure to the governance chaos.
The Exit and Rebirth
On April 12, 2024, Godfrey Phillips’ board formally approved exiting the retail business, citing stakeholder feedback, long-term performance, and market conditions. By September 2024, the company had signed a term sheet with retail startup New Shop, in a deal reportedly valued between ₹700 and ₹ 1,000 crore. New Shop began rebranding stores in phases, with the full transition completed by March 2025.
Three Lessons From 24Seven’s Journey
- First-mover advantage is a head start, not a moat — without continuous reinvention, faster-moving competitors will catch up and overtake.
- Governance can shape survival as much as market conditions — internal disputes and unclear strategic priorities can paralyse a business at the exact moment it needs to move fast.
- Consumer convenience is a moving target — what felt revolutionary in 2005 (a 24-hour store) looked outdated by 2020 (a 10-minute delivery app).
What Really Killed 24Seven?
The honest answer is both. Quick commerce eroded the commercial case for physical convenience retail, while the management conflict stripped the business of decisive leadership at the exact moment it needed to adapt or pivot. Disruption exposes weak governance, and weak governance accelerates disruption — the two forces feed each other rather than acting independently.
