A GS25 headquarters sales staff member is explaining the mutual growth support system to a franchise owner (Photo by GS Retail).
[Asia Economy Reporter Yuri Kim] GS Retail's convenience store GS25 announced that it received the 'Highest' grade in the '2020 Win-Win Growth Index Evaluation' announced by the Win-Win Growth Committee on the 15th. This is the second consecutive year receiving the 'Highest' grade.
GS25 stated, "Since being selected as 'Excellent' grade in the newly established 'Franchise Business' category in 2016, the first in the convenience store industry, and receiving the 'Excellent' grade for three consecutive years until 2018, from 2019 we became the first distribution company to receive the 'Highest' grade."
The Win-Win Growth Index is a quantified indicator evaluating the level of win-win growth of large corporations to promote co-prosperity between large and small-medium enterprises. Since 2011, the Win-Win Growth Committee annually announces the previous year's performance based on Article 20-2 of the Act on the Promotion of Mutual Growth between Large and Small-Medium Enterprises.
Among the evaluation items by the Win-Win Growth Committee, 80% reflects survey results from franchise store owners, and 20% reflects performance such as fair profit distribution and exchange support with franchise stores.
Regarding this, GS25 said, "Despite the challenging distribution industry environment due to COVID-19, we have continuously invested in improving store environments and introduced various win-win support systems to enhance store owners' operational satisfaction." It is also evaluated that strengthening competitiveness through providing various differentiated products and platform services led to GS25 ranking first in most figures such as daily sales per store, total sales, and operating profit.
Jin-Seok Oh, Vice President and Head of Convenience Store Business Division at GS Retail, said, "GS25 receiving the highest grade in the Win-Win Growth Index for two consecutive years is a monumental case of strengthening ESG (Environmental, Social, Governance) management in the Korean distribution industry. Based on the trust relationship built with store owners over many years, we will continue differentiated win-win support."
Meanwhile, GS25 announced the industry's first and highest-level franchise win-win support plan in 2017, focusing on supporting store electricity bills and expanding the minimum income subsidy amount. Since then, it has annually announced various win-win support plans such as new-type store development where store owners' profits increase as sales increase, hope closure support through the industry's first low-sales store standards, and extension of the minimum income subsidy period. GS25 directly supported franchise stores with win-win costs of 100 billion KRW in 2018, 130 billion KRW in 2019, and 150 billion KRW in 2020.
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