'K-Convenience Store' Effect... GS Retail Expects 5 Billion Won in Exports This Year

Ice and Food PB, etc... Development of Export-Only Products
Exports from January to August This Year 1.8 Times Higher Than Last Year

[Asia Economy Reporter Cha Min-young] GS Retail, which operates convenience stores such as GS25, is expected to achieve export sales exceeding 5 billion KRW this year.

On the 3rd, GS Retail announced that it will export 1kg bags of ice in 10 40-foot refrigerated containers to convenience stores in Taiwan. The export volume is 200,000 units, with the first shipment starting on the 7th and completing three shipments within this month.

This ice export was initiated after a local Taiwanese official came across a report related to GS25's 'Big Ball Ice Cup Ice' and inquired with GS Retail. This year, Taiwan is expected to experience a surge in ice demand during the Mid-Autumn Festival, the largest holiday, due to extreme heat.

Since June, GS Retail has developed three types of meat-free dumplings exclusively for export and has exported 45,600 bags to the UK, Canada, Australia, and other countries. Meat-free dumplings are dumplings without meat, commonly enjoyed by consumers in Western countries with many vegetarians. Previously, exports mainly focused on GS25's private brand (PB) food products, but now development of exclusive products has been added.

GS Retail's export performance is estimated to reach over 5 billion KRW this year, following 1.1 billion KRW in 2018 and 3 billion KRW in 2019. Despite the impact of the COVID-19 pandemic, by August this year, over 350 types of products worth 3.2 billion KRW had been shipped, surpassing 1.8 times the export amount of the same period last year.

GS Retail plans to strengthen export operations through the overseas sourcing team established in May, increase direct exports to Vietnam GS25 stores where it has already entered, and achieve annual export sales of 20 billion KRW within two years, expanding target countries to more than 50, including Europe.

Lee Ki-chul, head of GS Retail's overseas sourcing team, said, "Despite the global impact of COVID-19, the national brand value has been enhanced through K-quarantine, leading to many export inquiries about GS25's products representing K-convenience stores. GS Retail will continue efforts not only to develop exclusive export products but also to actively discover products from domestic small and medium enterprises to open overseas sales channels."