Convenience Stores on the Street, Becoming Wine Hotspots... 4 Companies' Sales Grow Rapidly by 77%

Major Convenience Store Chains' Wine Sales Soar Annually
GS25 Offers Same-Day Wine Delivery Service
CU Features Small-Size Wine and Discount Events
7-Eleven Introduces Cup Wine and Paper-Pack Wine
Emart24 Presents 'Wine of the Month' Selection Service

[Asia Economy Reporter Cha Min-young] "The perfect end to my day is a glass of alcohol after a shower." Kim Seong-hyun (pseudonym), a man in his 30s living in Yangcheon-gu, Seoul, stops by his regular convenience store near his home after leaving work at 7 p.m. today as well. He goes to pick up a wine he pre-ordered. Although he had insisted on buying from liquor specialty stores for years, after discovering rare limited-edition wines at convenience stores recently, he has abandoned his fixed notion about 'convenience store wine.' He also enjoys the fun of discovering 'my own wine' among affordable wines priced around 10,000 KRW.

Street convenience stores have emerged as companions for single-person home drinking enthusiasts. The combination of a nationwide large-scale offline distribution network and information technology (IT) has made it easy to purchase quality wines anywhere, which is a key factor in their popularity. Efforts to meet trends, such as 'single-serving mini wines' for people living alone, are leading to increased sales.

According to the related industry on the 15th, wine sales at the four major domestic convenience store chains have surged by an average of 76.6% year-on-year as of the 13th of this month. Emart24, a latecomer, recorded a high growth rate of 233% compared to the previous year. Existing leading companies GS25, CU, and 7-Eleven also showed double-digit growth rates of 22%, 34.1%, and 17.4%, respectively.

Even when extending the period to the past three years, the growth trend is steep. GS25, which has the most stores in the country, recorded wine sales growth rates of 38.5% in 2018 and 55.8% in 2019. CU saw 28.3% in 2018 and 38.3% in 2019, while 7-Eleven recorded 23.7% in 2018 and 19.8% in 2019. Emart24 increased by over 200%, with 226% in 2018 and 218% in 2019.

In particular, small-sized wines played a leading role in driving the increase in wine sales despite their relatively low prices. According to CU, small-sized wines under 375ml accounted for about 18% of total wine sales as of March. Accordingly, discount events selling two half-size (375ml) wines or three mini-size (187ml) wines for 9,900 KRW are currently being held for 10 varieties.

Small-capacity wines that enhance practicality, such as cup wine and pack wine, which break away from the stereotype that wine must be drunk from an authentic wine glass, have also been released. They are useful for light outings or gatherings like picnics by the Han River. 7-Eleven sells mini wines such as screw-cap sangria and sparkling wines, half wines that reduce the volume by half for red and white wines, and small-capacity 'one-glass' paper pack wines that do not require a glass.

The wine reservation order service incorporating IT technology has also been introduced by all four convenience store chains, with 7-Eleven being the last to join. This service addresses consumer inconvenience caused by the domestic ban on online liquor transactions. The usage method is generally similar. Customers pre-order wine through a mobile app, and within 2-3 days, the wine is delivered to a designated store where the customer pays and picks it up. For convenience store owners, this serves as an incentive to increase customer visits.

Going one step further, a 'same-day wine reservation service' has also been launched. GS25’s Wine25 service allows customers to order by 11 a.m. and purchase wine by 6 p.m. on the same day. In fact, wine sales at GS25 stores in the Gangnam area, which proactively introduced the service last December, surged by 72.3% year-on-year. Notably, sales of famous premium wines such as Kendall-Jackson and Camel Road Pinot Noir stood out. Accordingly, GS25 plans to expand its liquor categories to include cognac, vodka, whiskey, and more, and extend the service to all stores in the metropolitan area by the first half of this year.

Seo Hye-won, MD of the Beverage Food Team at BGF Retail, which operates CU, said, "As the number of people drinking alone and at home has recently increased, customers purchasing wines that suit their tastes at nearby convenience stores are rapidly growing. Especially with the rising demand for mini wines, we plan to expand the related product lineup and actively promote discount events such as 10,000 KRW for four bottles."

Son Areum, liquor buyer at Emart24, said, "In line with the trend of increasing customers enjoying wine, we are introducing various varieties and nationalities of wine at reasonable prices. Through wine O2O (online to offline) services and 'Wine of the Month,' which introduces new wines every month, we strive to satisfy diverse customer demands."