Seeing the Neighborhood Through Convenience Stores [Convenience Store Map Drawn with Big Data]

Big Data Marketing Battle in the Distribution Industry

'GS25 Jeonju Main Store,' a liquor-specialized flagship store reflecting data that shows 70% of liquor purchases last year were made outside Seoul.

[Asia Economy Reporters Yuri Kim and Jinyoung Jeon] The big data from 50,000 convenience stores nationwide is utilized not only for ordering products suited to each commercial district but also for evolving the convenience store industry through specialized stores that reflect regional characteristics. When products that sell well in academy districts and office areas are clearly identified, recommendations can be made to other similar commercial district stores, enabling interaction and creating a 'virtuous cycle of big data.' This immediate reflection is analyzed to enable the continuous growth of convenience stores.

CU used consumption data centered on offices and single-person households in Yeoksam 1-dong, Seoul, to place about 20% more alcoholic beverages and side dishes in general stores compared to stores of the same size in other parts of Seoul. A liquor-specialized store was also opened in the area. In the current situation where the 'home drinking' culture is increasing the types of alcoholic beverages sought at convenience stores, this approach uses existing sales data to determine and apply the appropriate product assortment for each store. The more than 5,000 wine-specialized stores currently operating are also managed based on such big data.

GS25’s flagship store strategy is also based on big data. Following the GS25 Hapjeong Premium Store and GS25 Suwon Haengridan-gil Store last year, GS25 Jeonju Main Store was introduced as a flagship store this month. The GS25 Hapjeong Premium Store, located in the Hapjeong-dong cafe street, was designed with a concept strengthening cafes, alcoholic beverages, and ready-to-eat foods. Since its opening in November last year until the end of last month, sales at this store soared to 8 times for wine, 4 times for coffee beans, 4 times for ice cream, and 3 times for cosmetics compared to general GS25 convenience stores. The second store near Suwon Hwaseong reflected big data showing it was a frequently visited tourist spot, focusing on travel snacks and souvenirs, with frozen side dishes, wine, and snacks gaining popularity. GS25 Jeonju Main Store also confirmed demand where the share of liquor purchases outside Seoul exceeded 70% last year through 'Wine25Plus,' and launched a liquor-specialized flagship store in this region, achieving success with wine and whiskey sales accounting for 60% of total sales during the first week of opening.

Convenience stores also enhance and utilize this big data before opening new stores. Seven Eleven recently signed a business agreement with the real estate valuation solution startup 'Oasis Business' and began building an advanced startup information system. Seven Eleven plans to increase the accuracy of franchise store sales forecasts by receiving not only existing sales data but also data on floating population analysis and sales of surrounding other business types, enabling more objective commercial district analysis.

Experts see this evolution based on big data by convenience stores being used not only for product assortment but also for expanding the convenience store function as a 'lifestyle platform.' Professor Yonggu Seo of the Department of Business Administration at Sookmyung Women’s University said, "Convenience stores are small commercial districts located closest to residential areas, sensitive to regional characteristics, and have distinct features by commercial district. The evolution toward responding to changing commercial districts through big data analysis and immediately reflecting consumer convenience will accelerate."