CU·GS25 Increase by Nearly 20%
Teen Usage Accounts for Over Half
Outdoor Activities Rise After Social Distancing Lifted
[Asia Economy Reporter Jeon Jinyoung] As activities centered on staying at home shift to full in-person attendance at school and work, the amount recharged on transportation cards at convenience stores is rapidly increasing.
According to BGF Retail, which operates CU, the amount recharged on transportation cards at convenience stores in April increased by 19.1% compared to the same period last year. Notably, unlike office workers who use credit cards or postpaid transportation cards, the usage rate among teenagers using transportation cards for commuting to and from school stood out at 44.1%.
GS25, operated by GS Retail, also saw a rise of 18.0% in transportation card recharge amounts at convenience stores in April compared to a year earlier. Teenagers accounted for 62.7% of the total, making up more than half. Emart24 also experienced a 46% jump in transportation card recharge amounts during the same period compared to the previous year.
When compared to the pre-COVID-19 period, the scale of recharge amounts showed a clear difference.
CU's recharge amount growth rate, which was 12.6% in 2019, sharply dropped to -17.1% in 2020 when social distancing was strengthened. It then rose to 13.5% last year as social distancing levels were adjusted. The growth rate up to April this year was 16.8%, showing a higher growth rate than before COVID-19.
Other convenience stores showed similar trends. GS25's recharge amount growth rate, which was 14.3% in 2019, fell to -16.6% in 2020. It then rose to 13.5% last year and recovered to 16.4% up to April this year. Emart24's recharge amount growth rate dropped from 24% in 2019 to -19% in 2020. It gradually recovered to 11% last year and surged to 32% up to April this year.
This phenomenon is interpreted as a result of outdoor activities, which had decreased due to COVID-19, rapidly increasing in conjunction with the lifting of social distancing measures.
A convenience store official said, "With the resumption of non-face-to-face classes and remote work due to the lifting of social distancing, and the increase in previously restrained outing customers, the scale of transportation card recharge amounts seems to be gradually increasing," adding, "We expect the demand that was held back to be released, leading to a recovery in transportation card recharge amounts that exceeds the pre-COVID-19 level."
In response, CU has launched promotions offering discounts when paying for ready meals with transportation cards to target reopening demand. GS25 released a 3rd generation transportation card usable at credit card merchants, targeting the start of full in-person attendance for teenagers. The credit payment transportation card can be recharged and used at transportation card locations without a separate registration process after purchase and can be used at all credit card merchants nationwide.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
