First reversal since 2002 of ‘13,899 GS25, 13,820 units of CU’
Concerns about the industry’s “service and product competition”
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| ▲ The convenience store market has been reorganized. Based on the number of stores, the first and second place in convenience stores have been overturned 17 years after 2002. GS25 surpassed CU and rose to number one. CU, 7-Eleven, and E-Mart 24 are following. (Photo = Reporter Shin Ji-hoon) |
[아시아타임즈=신지훈 기자] In 17 years The market for convenience stores has been reorganized. GS25, which had been ahead in profitability and sales, but fell behind CU in the number of stores, finally reversed the number of stores and entered the first place.
As competition in the convenience store industry over the recent number of stores has overheated, some people Some point out that it is time to focus on better service and product competition rather than ranking competition.
According to the Fair Trade Commission’s affiliate business information provision system and related industries on the 17th, GS25 had 13,107 stores as of the end of last year, but by November this year, the number of stores net increased to 792 to record 13,899.
On the other hand, CU has not missed the top spot since 2002, and the number of stores at the end of November was 13,820, which is 79 fewer than GS25. CU had 13,169 stores at the end of last year, but by November this year, it only increased its number of stores by 651, giving the GS25 the No. 1 spot.
Seven-Eleven, which ranked third with 9,555 stores at the end of last year, recorded 15,000 as of November. E-Mart 24 has 4438 stores as of the end of November, up 731 from 3707 last year. Ministop’s number of stores at the end of November is 2582.
A GS25 official said, “It is estimated that the number of stores in operation has risen to the top as well as the number of stores that have been switched to brands from other companies has increased rapidly.”
GS25 has already surpassed CU in sales at the headquarters and sales per franchise store. According to the information disclosure letter of the convenience store franchise published on the FTC affiliate business transaction website, as of the end of last year, GS25’s sales per pyeong was 3,129 million won, ranking first. CU is second with 26.94 million won.
In addition, in terms of sales as of last quarter, the sales of GS Retail’s convenience store business was KRW 1.817.8 billion, up 3.5% from the same period last year. On the other hand, CU recorded 1.582.8 billion won, an increase of 2.8%.
The industry predicts that a full-fledged franchise battle will take place next year. Convenience stores usually sign a five-year contract with the head office, because the expiration of the convenience store contract will come from next year.
In particular, the convenience store industry is focusing on increasing the number of stores by changing the brand of stores that are already operating, as new openings are not as easy as before, due to the convenience store voluntary regulations restricting store openings and raising the minimum wage.
Accordingly, there is a high possibility of business owners choosing brands with better conditions, and concerns over bleeding competition are high.
An official in the convenience store industry said, “Unlike the past, it seems that the battles between brands will become more intense in a situation where new stores are difficult due to various regulations. Rather than quarreling over the number of stores, we should focus on providing differentiated services such as delivery services and financial services, and focus on launching products that only convenience stores can display.”