GS Supermarket "Combining GS25 Operation Experience, Franchise Store Sales Increase by 23.8%"

Mutual Growth Activities Including Product Sales Increase, Cooked Food Revitalization, and Activation of Profit Decline Points
Headquarters Supports Delivery Fees and Discounts Until June to Strengthen New Trend Delivery Services
Franchise Store Sales Increased by 23.8% Compared to the Previous Year

[Asia Economy Reporter Yuri Kim] GS Supermarket (GS The Fresh) announced on the 17th that it is striving to improve the actual profits of franchise stores by enhancing store efficiency and preparing support measures to overcome difficult social environments such as COVID-19 and to revitalize store sales.

GS Supermarket, operated by GS Retail, has been running a franchise business since 2010 and currently operates 162 franchise stores as of this month. It is explained that the DNA of the franchise business of GS25, the top-selling convenience store operated by GS Retail, is combined with GS Supermarket franchise stores to maximize growth synergy.

GS Supermarket stated, "We are working to increase the completeness of headquarters-centered chain operation activities, improve store efficiency through improvements in the computer system, and reduce costs to increase the profits of store owners, while implementing various win-win support measures." The main win-win initiatives carried out by GS Supermarket include ▲support for increasing product sales ▲support for revitalizing cooked food ▲support for events at newly opened stores and stores with poor profits to respond to competitors ▲support for activating delivery services ▲improvements to the dedicated app.

To increase product sales, MD proposes products that sell well considering the season and trends. To revitalize in-store cooked food sales, which have been growing every year, incentives of up to 15% of in-store cooked food sales are provided. For new or transferred store openings, support is provided for disposal to actively display and sell fresh food. When competitors open stores, discounts, promotions, and disposal support are provided for efficient response activities. In line with the non-face-to-face sales trend, GS Supermarket has established related computer systems and joined delivery services such as Yogiyo and KakaoTalk delivery in addition to the GS Supermarket app. To promote this, delivery fees and delivery-related promotional discount costs will be borne by the headquarters until June this year. To enhance customer convenience, various services are being developed through continuous improvements to the dedicated app, and recently, a smart order service that allows customers to pick up at the store at a bargain price through advance reservation has also been provided.

GS Supermarket explained that the increase in store efficiency through headquarters-centered chain operation activities, cost reduction effects, and the addition of pre-order systems and delivery service functions through the dedicated app resulted in a 23.8% increase in franchise store owners' sales in 2020 compared to 2019.

In addition, minimum support for store operating expenses, franchise fee discounts for multi-store operators, support for congratulatory and condolence events, opportunities for overseas training, support for underperforming stores (ESPA), and operation of Tomorrow Store linked with local self-support centers are in place.

Jeon Ju-seop, head of the GS Supermarket Franchise Support Team, said, "We operate various win-win plans to revitalize sales and support efficient store operations for store owners facing difficulties, and the response from store owners is high. GS Supermarket will continue to strive to prepare various support measures for store owners."