GS Supermarket Indonesia Turns Profitable Last Year..."Opening 20 Stores by 2025"

GS Supermarket Indonesia Turns Profitable Store 4 Years After Entry
Sales Up 27.3% Compared to 2019... 'Localization Strategy' Effective
Raised 3.2 Billion KRW from Indonesian Gudang Garam Investment Firm PT NIS
"Opening 20 Stores by 2025... Will Continue Sustainable Growth"

An employee is arranging products at GS Supermarket in Indonesia.

[Asia Economy Reporter Yuri Kim] GS Retail announced on the 13th that GS Supermarket (GS THE FRESH), which has entered Indonesia, turned a profit last year.

GS Supermarket entered the Indonesian supermarket business in 2016 and currently operates five stores. The company stated, "Convenient shopping, advanced marketing, and offering various Korean-style products and services that match the K-culture wave have led to sales growth, achieving profitability within four years of entry."

Last year's sales increased by 27.3% compared to 2019. In particular, sales of K-food products rose by 52.3% compared to the previous year. Korean pears (fruit), ramen, tteokbokki, and kimchi are especially popular. Major products are sold with halal certification.

The company differentiated itself with efficient store layouts for convenient shopping, unique facilities such as clean prayer rooms, and food courts reflecting both Korean and local cuisine, which are rarely seen in local stores. Every year, they hold the "Korea Food Festival," providing opportunities to experience excellent Korean products and culture.

Last month, they completed an investment contract in the form of a paid-in capital increase worth 42 billion rupiah (approximately 3.2 billion KRW) with PT NIS, an investment company of Gudang Garam, Indonesia's largest group. This final contract was made after discussions on corporate value and business strategy following an MOU signed last year.

GS Supermarket expects various business opportunities through a strategic partnership (SI) with the Gudang Garam Group, including improving operational efficiency of the supermarket business, expanding exports to support sales channels for excellent domestic small and medium enterprises, and importing popular local products to expand product assortment. They plan to expand to 20 stores by 2025 through real estate development support utilizing the local partner's network.

GS Supermarket established a 100% locally owned subsidiary in Jakarta, Indonesia, in June 2014 to prepare for the supermarket business. In October 2016, they opened Indonesia's first premium concept store in a luxury residential area in Bogor City near Jakarta and have since expanded to five stores.

Jinseok Oh, Head of Strategy Division (Vice President) at GS Retail, said, "Based on over 40 years of experience operating supermarkets in Korea, GS Supermarket is successfully operating five stores in Indonesia. Through this strategic partnership with Gudang Garam, Indonesia's top group, we will strive to create various business opportunities together."