DFI navigates ‘hardest’ market China as 7-Eleven stores profit despite online price wars

International retailer DFI Retail Group, which operates 7-Eleven and Maxim's, faces challenges in China's market due to "unsustainable" online subsidies. CEO Scott Price expressed that Chinese customers still approach spending with a "value-focused" mindset and unrealistic expectations of pricing. Despite this, the country's growing middle class and robust supply chain could provide opportunities for retailers like DFI.

The company plans to expand its 7-Eleven presence in mainland China to approximately 3,000 stores in the coming years, up from the current 2,000.

The Chinese government has warned about "neijuan," or cutthroat competition that drives prices down and suppresses domestic demand. China's e-commerce giants have been at the center of controversy for their aggressive subsidies to lure customers. DFI acknowledged the subsidies' appeal to Chinese consumers but noted they are not economically sustainable due to their lack of "bricks-and-mortar accountability."

As of December 2025, DFI Retail operated 7,580 outlets across various sectors, including food, health and beauty, convenience, home furnishings, and restaurants. However, intense online competition and the economic downturn have led foreign retailers to scale back their mainland operations. In December, health and beauty chain Mannings announced it would cease all retail operations in mainland China by mid-January, turning to cross-border services instead.

DFI still operates 7-Eleven as a franchise in Southern China and owns the Maxim's chain of restaurants in the country. To adapt to changing consumer habits, DFI has added digital channels and implemented stricter cost controls. The 7-Eleven business in Guangdong province, where costs have become "pretty low," has returned to profitable growth after a period of losses.

Additionally, high-value mainland tourists are returning to Hong Kong, reversing a trend of day trips and skipping luxury shops. This resurgence in spending highlights that Chinese consumers are value-focused but still willing to splurge on experiences.