Convenience Store Closing Sale Strategy Worked... CU Expands Green Save Nationwide

Customers are shopping for products eligible for the closing sale service 'CU Green Save' at CU Yeoksam Branch. (Photo by BGF Retail)

[Asia Economy Reporter Seungjin Lee] CU’s closing sale service ‘Green Save’ will be expanded to more than 14,000 stores nationwide starting from the 12th.

In June, CU introduced the Green Save service to some stores in Seoul, offering products nearing their expiration date or slow-selling items at up to 50% discounted prices.

The nationwide expansion of the Green Save service just about three months after its launch is due to its social impact of reducing food waste as well as the positive response from customers who seek thrifty consumption.

Last month, sales from the Green Save service surged by an astonishing 16 times compared to the initial introduction period (July), and the quantity sold also increased more than 15 times during the same period. As of last month, this prevented about 3,000 near-expiration and slow-moving products per day from being discarded while still edible.

In particular, CU’s Green Save service has gained strong popularity among housewives, being called a ‘convenience store food court discount’ in online communities such as cafes and blogs where the 30s to 50s age group is predominant.

In fact, 66.4% of the service usage occurred in residential areas densely populated by 3- to 4-person households. This is more than five times the usage in one-room and officetel locations (12.5%) where the main customer base of convenience stores?people in their 20s and 30s familiar with mobile-based shopping?are concentrated.

The top-selling items also reflected convenience store shopping trends, with snacks, home meal replacements (HMR), and milk leading instead of ready-to-eat meals like lunch boxes and triangular kimbap preferred by single-person households.

Recently, as more consumers clearly understand the difference between the expiration date (the period during which the product can be sold) and the consumption date (the period during which the product can be safely consumed), the aversion to near-expiration products has diminished, leading more housewives to use the Green Save service as an opportunity for thrifty shopping.

Kim Jihoe, MD of BGF Retail’s e-commerce team, said, “CU’s Green Save service designates about 3,000 items including snacks, ramen, and HMR, as well as short shelf-life ready meals, as closing sale targets, which has received positive responses from a diverse customer base. We will continue to expand the operating stores and categories of CU Green Save service to proactively address environmental issues caused by food loss and help customers shop rationally.”