Oh! It's not a Mart... This is a Convenience Store

Fruits, Vegetables, Refrigerated Side Dishes, and Other Ingredients

Increased Sales of Multi-Pack Ramen and Other Bulk Items

Aiming to Create the Perception of 'Not More Expensive Than Marts'

[Asia Economy Reporter Lim Hye-seon] As the COVID-19 pandemic continues, demand for daily necessities and fresh foods at convenience stores instead of marts is increasing. The convenience store industry plans to cultivate convenience stores as community-based platforms by instilling the perception that "prices of daily necessities and fresh foods are not more expensive than marts" through various discount events and providing diverse experiences.

According to CU on the 23rd, during the first to fourth weeks after the COVID-19 outbreak, average sales per store of hygiene products such as hand sanitizers (88.1%) and oral care products (25.1%) increased significantly compared to the previous year. As the situation prolonged (weeks 5 to 8), sales growth was more prominent in fruits and vegetables (64.5%), refrigerated side dishes (28.4%), and ingredients (22.6%). GS25 also saw a sharp increase in sales of bottled water and fruits by 89.2% and 77.0%, respectively, from the same period last month between the 16th and 19th. Tofu and vegetables increased by 42.3% and 41.5%, respectively. The situation was similar during the Middle East Respiratory Syndrome (MERS) outbreak.

Sales of bulk items also increased. According to Seven Eleven, from the 1st to the 19th of this month, sales of 8-pack instant rice and 1ℓ white milk grew by 68.0% and 26.2%, respectively, compared to the same period last year. Sales of 5-pack ramen, 24-roll tissue packs, and large-sized cola also increased by 15.2%, 5.1%, and 13.8%, respectively. Convenience stores are expanding the range of discounted items or increasing specialized stores. Generally, convenience store promotional items change on the 1st of each month, but recently, as more consumers shop for groceries at convenience stores, promotion periods and ranges have been extended to enable more reasonable shopping.

CU has expanded discounts not only on emergency foods such as canned goods, ramen, and instant rice but also on ingredients typically purchased at large marts, including grilled mackerel, grilled flatfish, tofu, whole kimchi, and white milk. The quantity of bread items such as sliced bread and morning rolls, as well as fruits like apples and bananas, has been increased while prices have been lowered to about half of market prices. Beyond food, with mask-wearing becoming routine, prices of oral care products such as mouthwash and toothpaste, which have recently seen rapid sales growth, as well as household items like roll toilet paper and detergents, are discounted by up to 50%. GS25 is running plus-one (1+1, 2+1) and super special promotions on a total of 50 items, including 25 daily necessities and 25 fresh food items, until the end of this month.

Seven Eleven has increased the number of 'Food Dream' stores by four this month alone, expanding to 20 stores. Food Dream stores are differentiated stores with a floor area of 132㎡ (about 40 pyeong), twice the size of regular stores, focusing on ready-to-eat foods, fresh foods, home meal replacements (HMR), wine specials, and daily necessities. Seven Eleven plans to expand Food Dream stores to 500 this year. A GS25 official explained, "This helps increase profits for store owners struggling with domestic demand stagnation and sales decline due to COVID-19, and also allows customers who avoid visiting crowded facilities to safely and quickly purchase daily necessities."