[Convenience Store Empire] 50,000 Quick Commerce Forward Bases Nationwide... 'The Second Heyday'

②Evolving into a Spiderweb Store Network Delivery Hub

Continuous Growth Driven by Increasing Single-Person Households and Product Competitiveness
3 Convenience Store Chains with 44,180 Stores... 9,107 Stores Added in 5 Years
Delivery Service Sales Soar... CU Up 43.8%, GS25 Up 243.8%
"Integrating Cutting-Edge Technology into Retail... Aiming to Shorten the Last Mile"

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[Asia Economy Reporter Lim Chunhan] Since the COVID-19 pandemic, convenience stores have been experiencing a ‘second heyday.’ The domestic convenience store market continues to grow steadily, driven by the increase in single-person households and strengthened product competitiveness, and the nationwide 50,000 stores have established themselves as forward bases for quick commerce.

◆Increase in New Stores, Unmanned Stores Growing Rapidly

According to the Ministry of Trade, Industry and Energy as of June this year, the number of stores operated by the three major convenience store chains?CU, GS25, and 7-Eleven?was 44,180. This is an increase of 9,107 stores compared to five years ago (35,073 stores). Emart24, ranked fourth in the industry, had 5,857 stores as of the end of last year. Although the domestic convenience store market is considered saturated, new stores continue to open steadily, especially in redeveloped old downtown commercial areas and newly built apartment complexes.

However, due to rising labor costs influenced by minimum wage increases, unmanned convenience stores are becoming the trend. According to CU, the number of hybrid stores, which was 300 last year, increased to 400 as of July this year. Currently, GS25 operates 661 hybrid stores, 7-Eleven has 390, and Emart24 runs 1,330. These stores have staff during the day but operate as unmanned stores during late-night hours.

Fully unmanned stores apply technologies such as biometric recognition, QR codes, LiDAR cameras, and weight sensors, enabling automatic payment when customers select and leave with products. CU’s ‘Tech Friendly’ and 7-Eleven’s ‘DT Lab Store’ are representative examples. Most of these are still operated in closed environments centered around company headquarters. GS25 operates 76 fully unmanned stores, CU has 2, 7-Eleven runs 40, and Emart24 has 1.

◆Expansion of Short-Distance Delivery, From Robots to Drones

Convenience stores are positioning quick commerce as their future growth engine. Indeed, their nationwide store networks, spread like a spider’s web, provide optimal conditions as hubs for short-distance delivery. CU reported that from January 1 to August 8 this year, delivery service sales increased by 43.8% compared to the same period last year. During the same period, GS25’s sales rose by 243.8%, and 7-Eleven’s by 50%. Emart24 started its own delivery service via its app in January this year, with usage doubling every month on average.

In downtown Seoul, outdoor autonomous robot tests are underway. Since August last year, 7-Eleven has been developing the autonomous delivery robot ‘Newbee’ with Newility and conducted pilot operations at one store. From the fourth quarter of this year, as part of a government demonstration project, multiple robots will be tested across several stores. Three stores in Seoul’s Gangnam, Seocho, and Songpa districts?areas with steady delivery demand and suitable environments for robot navigation tests?will participate, with a total of three delivery robots deployed.

Drone delivery services are being introduced in areas with somewhat limited accessibility. Since last month, CU has been operating drone deliveries every Friday and Saturday from 3 PM to 8 PM from Yeongwol Jugong branch in Gangwon Province to a nearby glamping site about 3.66 km away. The drones used for delivery weigh 17 kg and can fly for about 20 minutes without recharging. Their maximum speed is 36 km/h, and the average delivery time is about 10 minutes. 7-Eleven offers drone delivery services from Gapyeong Arboretum No. 2 branch in Gyeonggi Province every Tuesday to Saturday from 10 AM to 7 PM. This service targets travelers at nearby pension complexes, covering a distance of about 1 km, with about 3 minutes from takeoff to delivery.

An industry insider said, “With the commercialization of drone delivery services, we can overcome regional and distance limitations. By integrating cutting-edge technology into retail, we will shorten the last mile for products to reach customers.”