Convenience Store Big 3 'App War'... "Capture the Mobile Commerce Market"

Expanding App Product Range and Enhancing Features

[Asia Economy Reporter Lim Chun-han] The "Big 3" convenience stores?CU, GS25, and 7-Eleven?are intensifying their mobile commerce battles beyond just competing in the number of offline stores. Each company is focusing on increasing the number of products available on their applications (apps) and expanding service features.

On the 8th, CU announced that next month it will undertake a comprehensive upgrade of its app functions, including introducing pre-ordering, online-exclusive products, and personalized curation. The core direction is to strengthen online services linked with physical stores. While offline stores previously handled only 2,000 to 3,000 products, CU plans to significantly expand the number of products available for sale by combining app functions such as pre-ordering and inventory checks. Additionally, CU will enhance its quick commerce feature for short-distance delivery and operate differentiated planned products.

At the end of last year, CU established an online Biz Lab to strengthen its online competitiveness and invested over 5 billion KRW for this app overhaul. Since the COVID-19 pandemic made non-face-to-face trends mainstream, product sales through the app at convenience stores have surged. CU’s app sales revenue last year increased by 388.6% compared to the previous year, and from January to February this year, it rose by 29.2% year-on-year. The number of products handled increased from about 340 in 2020 to around 500 currently.

GS25 also plans to roll out a new update within the year to improve its "My Fridge" app in a customer-oriented direction. Currently, GS25 offers various services through its app, including a gift storage function, QR integrated payment, One Plus Con, shopping mall, pre-ordering, Wine25 Plus, subscription services, and gifting. GS25’s app sales revenue last year surged by 1,285.5% compared to the previous year, and from January to February this year, it increased by 373.9% year-on-year. The number of products sold grew from about 2,100 in 2020 to approximately 5,600 now.

7-Eleven completely revamped its "Seven App" at the end of last year. Notably, it introduced the "Find Products in My Neighborhood" chatbot service that provides real-time product inventory by store, and added subscription services, event product storage functions, and delivery service features. As a result, app sales revenue last year rose by 70.8% compared to the previous year, and from January to February this year, it increased by 28.3%. The number of products handled grew from about 220 in 2020 to around 400 currently.

An industry insider said, "Product sales through mobile apps naturally lead to increased customer visits to stores and higher sales," adding, "We will continue to strengthen an integrated service network linking online and offline by providing various benefits and differentiated services."