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Tag: GS25

  • GS25 Sales to North American Shoppers Jump 131 Percent

    GS25 Sales to North American Shoppers Jump 131 Percent

    GS Retail recorded a 131 percent jump in sales to North American visitors at its GS25 convenience stores in South Korea during the first eight months of the year.

    The surge pushed North American shoppers to roughly 30 percent of total foreign customer sales across the network. That leaves them just 10 percentage points behind visitors from Greater China, who continue to hold the largest foreign share at approximately 40 percent.

    Buying beer instead of banana milk

    Spending patterns between the two visitor groups show a sharp split in basket composition. North American customers spend primarily on canned beer, wine and spirits, alongside sports drinks, energy drinks and sodas, spending more on canned beer than any other overseas group. Shoppers from Greater China buy dairy products, instant noodles and baked goods, where blueberry Greek yogurt recently overtook banana milk as the top-selling item.

    Geographic data highlights a similar divide in where travellers spend. Greater China tourists stay clustered around traditional shopping hubs and downtown districts in Seoul, Busan and Jeju Island. North American footfall has concentrated heavily along coastal resort corridors.

    East coast sales outpace Seoul hubs

    Regional revenue from North American buyers saw its fastest expansion in Gangwon Province, where sales climbed 338 percent year on year. The bulk of that volume settled along the province’s beach-lined east coast, driven by seasonal leisure travel.

    For convenience operators in South Korea, this geographic and product divergence changes how individual franchise locations must manage inventory during peak travel seasons. Stores in coastal resort towns require alcohol distribution and cold beverage stock lines calibrated for Western preferences, while urban transit hubs must protect shelf space for packaged snacks and fresh dairy popular with Chinese tour groups.

    GS Retail and rival chains such as CU and 7-Eleven have spent years competing over inbound tourist wallets, yet historical strategies focused almost exclusively on Mandarin-language signage and group tour bus routes. A sustained shift toward Western independent travellers introduces higher margins on liquor and ready-to-drink beverages, but demands different localized marketing at the store shelf.

    Merchandising shifts across 1,000 stores

    Earlier network expansions set the groundwork for tracking foreign transaction data at the point of sale. GS25 introduced foreign card processing upgrades across its domestic estate over recent operating quarters, giving the chain real-time visibility into basket differences by issuing bank and country of origin.

    About 1,000 GS25 stores located in high-traffic tourist corridors have rolled out English-language promotional displays, recipe cards and product preparation guides this year. The company plans to use autumn purchasing data from coastal and metropolitan stores to adjust product distribution schedules ahead of the winter travel cycle.

  • GS25 Shifts Top-Selling Meal Box Lineup to 6,900 Won Across 18,000 Stores

    GS25 Shifts Top-Selling Meal Box Lineup to 6,900 Won Across 18,000 Stores

    GS Retail has revamped its ready-to-eat dosirak lineup across 18,000 GS25 convenience stores in South Korea, shifting its core recipe strategy to authentic domestic dishes while seeing its most popular price point rise to 6,900 won.

    Min Jung-hwan, a merchandiser with GS Retail’s Fresh Food Team, said in a Sept. 7 interview that the convenience chain launched a renewal of its meal boxes earlier this month to meet shifting consumer tastes across domestic stores and overseas branches in Vietnam and Mongolia.

    Rising dining prices have pushed daily lunch traffic toward convenience chains, where dosirak and fresh food items rarely exceed 7,000 won ($5.21). GS25 features approximately 20 different dosirak varieties each month, moving away from options priced below 6,000 won toward higher-quality banchan combinations and seasonal produce like spring cabbage bibimbap.

    Pricing shift and recipe pipelines

    Development cycles for new boxed meals at GS Retail take roughly 12 weeks from consumer trend analysis to store delivery. Culinary teams develop the banchan combinations, balance the flavor profiles, and run sample batches through lot testing at commercial factories before authorizing mass distribution.

    Rather than developing separate, milder product formulations for foreign tourists or overseas markets, the retailer is keeping core recipes consistent across territories. Outlets in Vietnam and Mongolia stock the same marinated bulgogi, dakgangjeong fried chicken, and japchae glass noodles sold in central Seoul.

    Even at GS25 stores in Vietnam and Mongolia, visitors are interested in authentic Korean-style dosirak. We try to meet such expectations so that they can feel they are inside a Korean convenience store.

    Marketing partnerships have accelerated this product turnover. GS Retail introduced co-branded meal boxes with chef Choi Kang-rok and runs a recurring monthly release schedule alongside its long-running Hyeja Dosirak line, an actress-fronted value brand active since 2010. Customer survey data from an early September brand renewal now dictates recipe adjustments rather than short-lived social media fads.

    Production across nine manufacturing plants

    Supplying daily fresh inventory to 18,000 domestic stores requires an industrial logistics network. GS Retail operates nine dedicated food manufacturing plants nationwide, delivering uniform meal boxes every morning. Consistency across regions remains the operational priority, from rice texture to the moisture absorption of bakery packaging.

    South Korea’s convenience sector now exceeds 53,000 outlets across competing operators, forcing chains to compete heavily on fresh food quality. When Japanese bento concepts first entered the domestic market decades ago, local operators lacked specialized food containers and processing equipment. Korean suppliers have since built proprietary packaging technology, including specialized containers that preserve seaweed crispness on triangular gimbap and trays designed for multi-sauce dishes.

    The regional convenience battle

    For convenience store operators across Asia, GS Retail’s refusal to localize recipes marks a clean departure from standard retail practice. Most regional operators adjust spice, sweetness, and protein ratios when entering Southeast Asian markets. GS25 is betting that global familiarity with Korean pop culture makes authentic recipes a stronger selling point than localized menus.

    This unified product approach gives GS Retail scale advantages in ingredient procurement and packaging development, but it concentrates operational risk. If consumer appetite for Korean food cools in overseas markets, franchisees in cities like Ho Chi Minh City or Ulaanbaatar face direct margin pressure from menus that cannot easily pivot to local staples. Rival chains like CU and 7-Eleven continue to mix regional items with imported lines in competing territories.

    Automation limits on the factory floor

    Factory automation remains the operational bottleneck across GS Retail’s manufacturing footprint. While the retailer has automated ingredient mixing, cooking, and container sealing across its nine plants, banchan packing still requires manual labor on assembly lines.

    Mechanical arms and robotic pickers cannot match the speed or dexterity of human workers when arranging delicate side dishes into compartmentalized trays. High labor dependency keeps factory overhead linked directly to minimum wage increases, capping how far production margins can expand without further packaging redesigns.

    GS Retail plans to maintain its 12-week development pipeline while rolling out faster batch runs for fast-moving social media food trends. The retailer is monitoring sales volumes across its domestic network and its Southeast Asian franchise footprint as the 6,900-won price tier establishes itself as the new commercial standard.

  • Retailers expand operations, sales see steady recovery

    Retailers expand operations, sales see steady recovery

    Many retail chains opened new stores this year even as retail sales of consumer goods and services saw a year-on-year rise of 20.5% in the first 11 months.

    Despite weakening external factors, continued domestic demand brought some relief, according to a report by HSBC.

    But though the pace started to slow down, retail sales remained a strong pillar of growth in November, the lender said.

    Total retail sales of consumer goods and services grew by 17.5% over November 2021.

    In recent months, while many factories laid off, furloughed or gave workers an early Tet (Lunar New Year holidays) service businesses such as F&B, retail and tourism expanded their operations.

    GS25 Vietnam, a joint venture between South Korea’s GS25 and local retailer Son Kim Group, has opened 200 franchised stores.

    Conglomerate Masan Group has bought another 34% in beverage chain Phuc Long Heritage to increase its ownership to 85%.

    “The two years of the Covid pandemic can be compared to a market research period and this year is the right time to launch expansion plans as well as to make a breakthrough in the retail race,” Trang Do, head of the retail services department at property consultancy Colliers, said.

    Tourism is reviving gradually, and contributing to the growth of retail services.

    The number of foreign arrivals was nearly three million in the first 11 months.

    Securities brokerage SSI said domestic consumption has recovered though not to pre-Covid levels, partly because of inflation.

    Inflation began to accelerate at the end of the second quarter, notably with a 17% increase in housing rents in September and October, and then 2% in November. This has affected domestic consumption.

    Last month headline inflation was 4.4% while core inflation was close to 5% due to a rapid recovery in demand.

    According to HSBC, rising inflation is a matter of concern and would increase in the next few quarters, forcing the central bank to take monetary measures.

    SSI said inflation would gradually rise in the first half of 2023, especially when the government considers adjusting prices of goods and services it manages such as electricity, healthcare and education.

    Do said large retailers are very interested in the Vietnamese retail market after the pandemic. However, the biggest difficulties for foreign investors in the retail sector are to find suitable premises in terms of location and area, and carrying out investment and license procedures.

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  • GS25 opens futuristic c-store concept

    GS25 opens futuristic c-store concept

    South Korean convenience-store chain GS25, owned by GS Retail, has opened a futuristic convenience store without a checkout counter in Jung District, Seoul this week.

    The store, which is located in the headquarters building of a local credit card company BC Card, is similar to Amazon Go, checkout-free offline malls in the US.

    One can enter the convenience store by scanning a BC Paybook QR code from BC Card’s mobile payment app at the speed gate.

    When customers enter the store, 34 ‘deep-learning cameras’ will recognise their behaviour. In addition, some 300 weight sensors installed throughout the store detects the number of items that customers choose.

    When a customer chooses their purchases and exit the speed gate, all the items will be automatically paid for through a payment system using artificial intelligence (AI) technology, and a mobile receipt will be issued.

    A video-recognition speaker is also installed, where a pre-set voice will guide the customers through speakers. If customers are standing at some point or do a particular action, the speaker will provide assistance.

    In the future, the company will gradually introduce technologies that guide customers to promotions when they approach a presentation product stand.

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  • South Korean convenience store chain launches franchise in Vietnam

    South Korean convenience store chain launches franchise in Vietnam

    GS25 Vietnam, a joint venture between South Korea’s GS25 and local retailer Son Kim Group, opened up its brand to franchisees beginning Friday.

    Interested franchisees can choose from one of three models offered by GS25 Vietnam: investing in a standalone store, a chain of convenience stores, or co-investing with GS25 Vietnam to open stores, said a representative of the brand.

    Franchised stores come in three models, with areas of 65-70 square meters, 100-120 square meters, or 150 square meters, respectively.

    Franchisees will have to spend at most VND2 billion ($86,260) to invest in a convenience store, and will be able to source products from major distributors in Vietnam or import South Korean goods, said Nguyen Thi Hong Trang, General Director of GS25 Vietnam.

    South Korean convenience store chain GS25 entered Vietnam in January last year, opening a store in Ho Chi Minh through a joint venture with the Son Kim Group, which operates in retail, real estate and media sectors.

    GS25 Vietnam currently owns 50 stores, and aims to open 2,500 nationwide after 10 years. Opening the business to franchisees is a major step towards realizing this goal, its brand representative said.

    According to the Ministry of Industry and Trade, on average, 1-3 retail stores are needed per 1,000 people. However, only 7,012 stores are considered modern retail stores in Vietnam.

    More than a third of Vietnamese households shop at convenience stores or mini supermarkets, with an average frequency of 10 times per year, data compiled by research firm Kantar Worldpanel shows.

    The UK-based Institute of Grocery Distribution forecasts that convenience stores in Vietnam would grow in double digits over the next four years and account for 37.4 percent of retail revenue by 2021

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  • Korean GS25 launches shared-bike charging service

    Korean GS25 launches shared-bike charging service

    Starting June, customers of South Korean GS25 convenience stores will be able to charge shared electric bicycles or kickboards.

    GS25 announced on Wednesday that it will set up an electric bicycle and kickboard charging service facility at its stores in partnership with the shared micro-mobility integrated platform “GoGoSing.”

    Under the terms of the deal, GoGoSing will operate 800 shared electric kickboards and shared electric bikes in Gangnam District in Seoul and Pangyo in Gyeonggi Province, while GS25 will set up charging facilities at stores in nearby areas.

    Customers will be able to use an electric kickboard and return it to a nearby GS25 store, and if they need to charge their device, they will also be able to exchange or charge batteries at the stores.

    GS25 expects that this will help convenience stores to move away from their focus on simply selling products and serve as a hub for charging various shared devices, as well as attracting new customers.

    GS Retail has introduced charging facilities for electric vehicles at 45 locales at present, and will offer delivery services for convenience store products since starting from April, in tandem with the delivery application Yogiyo.

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  • South Korean convenience store openings slow down

    South Korean convenience store openings slow down

    South Korean convenience store openings in South Korea fell last year, according to industry data. Thought to be the effect of increasing labour costs and market saturation, the slowdown has manifested amongst several industry operators – including BGF Retail’s CU, which opened 980 fewer stores than the previous year’s total of 1646; and GS25, which opened 1023 fewer stores last year after launching 1701 outlets in 2017.

    A government advisory to chain stores to maintain more of a distance between competing branches signals a likely continuation of the downward trend, as well as new laws mandating higher levels of paid leave to staff and a higher minimum wage. The same pressures have seen 19 per cent of convenience stores closing at night rather than operate 24 hours, compared with 10 per cent in 2017.

    A statement issued by CU said that the firm is prioritising profitability of existing stores over opening new locations.

  • FTC Korea approves convenience stores’ voluntary rules to curb competition

    FTC Korea approves convenience stores’ voluntary rules to curb competition

    South Korean convenience store operators have agreed not to engage in cut-throat competition in the latest move to better protect struggling franchisees. A key centerpiece of the voluntary deal calls for CU, GS25 and 7-Eleven and three other convenience store brands to decide “carefully” over whether to open a new convenience store near an area where a rival convenience store is already located.

    The deal said that convenience stores of rival brands should be at least 50 metres away from each other. Currently, convenience stores of the same brand should be located at least 250 metres away from each other to make sure that they do not compete against each other.

    The latest move came as South Korea has been struggling to protect franchisees in a country where chaebol, or family-controlled conglomerates, have dominated the economy for decades.

    “The voluntary regulation, if implemented in good faith, could help ease saturation and improve management conditions of franchisees of convenience stores,” Kim Sang-jo, chairman of the Fair Trade Commission, said in a signing ceremony of the voluntary deal in Seoul today.

    Last week, President Moon Jae-in instructed the antitrust chief to support a voluntary deal among South Korean convenience store operators so as to address the saturation of the market.

    Convenience stores have sprung up in commercial areas in Seoul and other major cities in recent years, driven by growth of single-member households.

    Last year, the number of convenience stores surpassed 40,000, a dramatic increase from 1989 when the first convenience store opened in eastern Seoul.

    Kim said the voluntary deal could prevent convenience store operators from recklessly opening new outlets in areas where there are already many convenience stores.

  • Ministop South Korea is for sale, rivals compete

    Ministop South Korea is for sale, rivals compete

    South Korean retail operators Lotte and Shinsegae are competing to buy the 21-year-old local subsidiary of Japanese convenience-store operator Ministop.

    Shinsegae and Lotte respectively own rival chains Emart24 and 7-Eleven and are both reportedly seeking to take full ownership of Ministop South Korea. Both companies see the deal as a means to grow their respective businesses in a market where convenience-store penetration has reached saturation point, limiting opportunities for organic network growth.

    7-Eleven currently operates 9535 stores across South Korea and Emart24 3413. The Ministop network numbers just 2535.

    Japan’s Aeon, which owns the Ministop brand, owns a majority 76 per cent of the South Korean business.

    Daesang group owns 20 per cent and Mitsubishi the balance. Aeon has appointed Nomura Securities to find a buyer for the business as it sees little future for the convenience store brand in South Korea, a highly competitive market. Instead, Aeon is looking to Southeast Asian markets for growth, including Vietnam, Thailand and Cambodia.

    Last year, Ministop South Korea sales totalled 1.18 trillion won (US$1 billion), ranking it fourth in revenue terms behind GS25, CU and 7-Eleven.

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  • GS25 brings facial recognition to new shop

    GS25 brings facial recognition to new shop

    Convenience store chain GS25 has opened up a cashier-less store in Seoul that uses face-recognizing cameras to handle payments.

    The company’s first Smart GS25 started operation at LG CNS’ headquarters in Gangseo District, western Seoul, on Monday. LG CNS is a long-time provider of electronic systems to GS25 and one of the companies working to add state-of-the-art technology to the convenience store chain.

    The unmanned branch is only accessible to LG CNS staff. The store’s front entrance will allow customers to enter through face recognition after they register with a camera in front of the store. Payments can also be made through the face-scanning technology, and the store automatically charges customer’s bank accounts.

    “We aim to introduce and test 13 new smart solutions by the end of this year at the Smart GS25,” the convenience store said in a statement on Monday. “The [long-term] purpose is to apply them to our branches to reduce our franchisees’ labor costs.”

    The experimental GS25 has eight new tech features. Although GS25 is late to the game, as its competitors CU, 7-Eleven and Emart24 have already rolled out their own automated technologies, some of GS25’s features are new to Korean convenience stores.

    One is the aforementioned face recognition technology for entrance and payments. Another is the image scanner at the cash register. Most convenience stores without a human cashier use barcodes to identify the products. GS25’s new system instead identifies an item by its packaging and weight.

    This allows customers to simply place items on the table before paying using facial recognition or a credit card. The company says it takes only about a second for the system to recognize five items at once, whereas with the conventional bar code system it would take 15 seconds to scan them one by one.

    An infrared camera and sensors are also installed at the store to regularly check which items need to be restocked.

    This system measures the distance to products to see whether there are any left on the shelf and automatically reports this information to the store supervisor.

    Other features include a smart CCTV that will track where customers spend the most time. This can help the store owner to decide where to place different items.

    “The Smart GS25 is not just an unmanned convenience store packed with tech gadgets,” said Lee Hyun-gyu, a manager of the new shop. “Its main function is to prove technologies that will enhance the convenience of store operation and relieve franchisees of the burden of labor costs. We expect some of the technologies tested here will be shown at our franchises by next year.”

    A GS25 spokesman added, however, that a Smart GS25 open to the public would probably not be autonomous.

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  • Convenience store in Korea enjoying revenue boost

    Convenience store in Korea enjoying revenue boost

    South Korean convenience store operators GS25 and CU received a boost from in-house brands in the second quarter.

    GS Retail, which operates the GS25 chain, recorded a net profit jump of 11.1 per cent year on year to 45.8 billion won (US$41 million) in the April-June period, on sales up 5.3 per cent to US$2 billion.

    GS Retail attributed the growth to development of new products at its convenience stores, with 36.7 per cent of GS25’s sales excluding alcohol and cigarettes coming from its private-label products in July.

    South Korean convenience store operators have been developing private-label products to attract more customers.

    GS25’s main rival CU posted a net profit of US$60 million from April to June, an increase of 105 per cent from the first quarter of this year, on sales of $1.3 billion.

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  • Cafe 25 opens 10,000th store

    Cafe 25 opens 10,000th store

    Convenience-store brand GS25 says 10,000 of its outlets now serve coffee products distributed under its house brand Cafe 25, just 30 months after the brand was launched.

    The figures show how successful South Korea’s convenience stores have been in challenging coffee-focused chains like Lotte’s Angel-in-Us and even Starbucks, by offering discounted alternatives through vast store networks.

    The GS Retail-owned group says it has already surpassed the 100 million-mark for the total number of coffee products sold, with Cafe 25 selling 40 million cups in the first half of this year alone.

    GS25 is putting significant effort into making the coffee products successful by installing top-notch coffee machines that sell for 13 million won (US$11,440) in each of its stores.To commemorate 10,000 GS25 store milestone, the company will be selling 50,000 promotional coupons online via Gmarket and Auction that allow customers to buy iced Americanos and iced lattes for half the usual price.

    An official at GS25 said the success of Cafe 25 products can be explained by the company’s bid to offer high-quality coffee products at affordable prices, while also leveraging the chain’s vast network of stores.

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  • GS Retail set footprint in US e-commerce

    GS Retail set footprint in US e-commerce

    South Korean retailer GS Retail has announced a KRW33 billion (US$29 million) equity investment in a US online retailer.

    The company has purchased stock in Thrive Market, in a move intended to secure a foothold in America’s thriving organic food sector. It is GS Retail’s first overseas investment.

    Thrive’s core business is to sell organic products to its subscriber base, posting annual sales growth of 40 per cent since it launched in 2015.

    A spokesman for GS Retail indicated that the firm expects Thrive to post solid growth in future, with expected sales of over KRW200 billion (US$178 million) for the current financial year.

    GS plans to market Thrive products through its existing GS25- and GS-branded retail chains within a year.

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  • South Korean convenience stores to sell more own brand

    South Korean convenience stores to sell more own brand

    More South Korean c-stores are set to launch in-house products as local retailers move to attract more consumers with price competitiveness.

    E-Mart24, the convenience-store arm of South Korean retail giant Shinsegae, said it is planning to unveil its own private-label product within this year. Ministop Korea, operator of Ministop, is set to launch its own branded products in September.

    The moves are part of the companies’ broader efforts to find a breakthrough in the saturated South Korean c-store landscape. The size of South Korean convenience stores private-label product market is estimated at around 3.5 trillion won (US$3.15 billion).

    CU, South Korea’s largest convenience-store chain, operated by BGF Retail, released its own brand, Heyroo, in 2015, and GS25, another major convenience-store chain, joined the move with You Us in 2016.

    BGF Retail said sales of its private-label products rose 35.3 per cent year-on-year in 2016. Last year’s revenue was up 19.1 per cent from 2016.

    GS Retail, operator of GS25, said sales of its private-brand items accounted for 36.6 per cent of its total revenue in the first half of this year, excluding revenue generated from cigarettes and services. The company has around 2000 products under private label.

    Another major convenience store chain, 7-Eleven, said sales of its in-house products accounted for 35.9 per cent of this year’s total revenue as of Sunday. It currently has some 1500 products under its private brand.

    “The companies will be able to survive in this saturated market only if they manage to secure consumers who are highly loyal to their private label products,” an industry source said.

    The market size for convenience stores in South Korea surpassed 20 trillion won in 2016, up 18.6 per cent from the previous year, according to industry data.

  • World Cup boosts South Korean convenience stores revenue

    World Cup boosts South Korean convenience stores revenue

    South Korean convenience stores saw their sales more than double in some categories as tens of thousands of South Koreans took to the streets to cheer on their national football team in the first game of its World Cup campaign.

    BGF Retail Co, which operates the country’s largest convenience store chain, CU, said sales of major products at its stores from 6pm Monday to midnight soared as South Korea faced Sweden in their 2018 FIFA World Cup Group F opener.

    Sales of beer surged 124.8 per cent, with revenue from ice cream and water jumping 121.9 per cent and 120.2 per cent, respectively, from the previous week.

    GS Retail Co, which operates GS25, said sales of beer skyrocketed 274.6 per cent on Monday compared with the same day the previous week.

    Police estimated some 17,000 fans joined the mass street cheering in Seoul’s Gwanghwamun Square. Another 6000 fans are estimated to have gathered at Seoul Plaza in front of City Hall.

    South Korea fell to Sweden 1-0. Its next game, against Mexico, will take place in Rostov-on-Don on Saturday.