[Convenience Store Empire] Sillim is for Dosirak, Yongsan is for Wine... Seoul Commercial Districts Seen Through Big Data

⑥Convenience Stores Reflect Neighborhoods

Sinlim-dong, Single-Person Household-Centered Commercial Area
Gasan-dong Ranks High in Ready Meals
Alcohol Consumption Patterns Vary by Region
Big Data Analysis Used for Product Ordering

[Asia Economy Reporter Lim Chun-han] In Seoul convenience stores, lunch boxes have the highest sales in Sillim-dong, Gwanak-gu, and Yeoksam-dong, Gangnam-gu, while wine and liquor sales are highest in Ichon, Hangang-ro, and Itaewon-dong, Yongsan-gu. Sales data by convenience store category based on 50,000 stores nationwide serve as a barometer revealing the consumption patterns and commercial characteristics of the local residents.

◆ Ready Meals Strong in University Areas and Industrial Complexes

According to a comparative analysis of GS25 and CU’s Seoul sales data from October to November this year by region (at the eup, myeon, dong level), lunch boxes ranked first in Sillim-dong, Gwanak-gu, and Yeoksam-dong, Gangnam-gu. Triangle kimbap had the highest sales in Yeongeon-dong, Jongno-gu, and Sinchon-dong, Seodaemun-gu; sandwiches in Yeongeon-dong, Jongno-gu, and Gasan-dong, Geumcheon-gu; and ramen in Sillim-dong, Gwanak-gu, and Gasan-dong, Geumcheon-gu. Instant brewed coffee topped sales in Yeoksam-dong, Gangnam-gu, and Sinchon-dong, Seodaemun-gu.

Commercial areas with high consumption of ready meals and coffee are concentrated in single-person households, university districts, industrial complexes, and office-dense areas. Sillim-dong, Gwanak-gu, is home to Seoul National University and has a commercial district centered around young people such as single-person households. In fact, Gwanak-gu has the highest youth population ratio in the country at 41%, and the proportion of young single-person households reaches 62.4%. Yeongeon-dong, Jongno-gu, near Hyehwa Station, is surrounded by Daehak-ro, Marronnier Park, and small theaters, attracting crowds on both weekdays and weekends, with a large floating population due to Seoul National University Yeongeon Campus, Sungkyunkwan University, and Korea National Open University. Sinchon-dong, Seodaemun-gu, where Yonsei University and Ewha Womans University are located, has traditionally developed as a commercial district where university students can eat and enjoy themselves, and is one of the youthful streets bustling with people in their 20s and 30s.

Gasan-dong, Geumcheon-gu, houses the Seoul Digital Industrial Complex, where many IT companies are located. More than 70% of the resident companies are in information and communication, knowledge, and advanced manufacturing industries, making it one of the industrial complexes with many workers in their 20s and 30s. This area ranked high in all ready meal categories including sandwiches and ramen (1st place), lunch boxes and triangle kimbap (2nd place). These products are easy to eat and are frequently chosen during overtime work. Yeoksam-dong, Gangnam-gu, is located along Gangnam-daero and Teheran-ro and is a large office commercial district with many commuters passing through Gangnam, Yeoksam, Seolleung, and Sinnonhyeon stations. It is also characterized by a large number of single-person households living in officetels and villas.

A customer is purchasing wine at CU. (Photo by BGF Retail)

◆ Single-Person Households Prefer Beer, Wealthy Areas Prefer Wine

Alcohol consumption patterns also varied by region. Beer sales were highest in Sillim-dong, Gwanak-gu, and Yeouido-dong, Yeongdeungpo-gu; soju in Suyu-dong, Gangbuk-gu, and Yeongdeungpo-dong, Yeongdeungpo-gu; and Makgeolli in Chang-dong, Dobong-gu, and Yeoksam-dong, Gangnam-gu. Wine sales were highest in Ichon-dong and Hangang-ro-dong, Yongsan-gu, while liquor sales were highest in Itaewon-dong, Yongsan-gu, and Yeoksam-dong, Gangnam-gu.

Sillim-dong, Gwanak-gu, and Yeouido-dong, Yeongdeungpo-gu, where beer consumption is high, are areas densely populated by single-person households and office workers, respectively. Since the COVID-19 pandemic, the ‘home drinking’ culture has taken root, leading to increased beer purchases at convenience stores. Suyu-dong, Gangbuk-gu, where soju sales are high, is near Suyu Station, a major transfer hub for public transportation in northern Gyeonggi Province. It has many residents living in officetels and multi-family houses and attracts hikers heading to Bukhansan Mountain. Yeongdeungpo-dong, Yeongdeungpo-gu, is densely populated with detached houses, multi-family houses, and apartments. Chang-dong, Dobong-gu, where demand for Makgeolli is high, is a commercial district backed by a large residential complex.

Wine and liquor are generally sold more in affluent areas with higher income levels and in emerging commercial districts in Seoul. Ichon-dong, Yongsan-gu, is a traditional affluent area in Seoul along with the three Gangnam districts. Hangang-ro-dong, Yongsan-gu, includes the currently hottest area, Yongridan-gil, and Itaewon-dong, Yongsan-gu, centers around Itaewon Station with commercial districts including Gyeongridan-gil and Haebangchon north of Itaewon and Noksapyeong stations. Both areas are bustling neighborhoods popular with the MZ generation (Millennials + Generation Z).

A customer is purchasing a Cookat product at GS25 Sillim Nanwoo store.

◆ Utilizing Big Data for Regional Product Strategies

Big data analysis in convenience stores is used for regional product ordering and opening specialized stores. GS25 actively uses regional data in its flagship store strategy. Hapjeong Premium Store in Mapo-gu, where GS25 is located, ranks third in liquor sales and is a store strengthened in alcoholic beverages and ready meals. GS25 Sillim Nanu Store reflects the characteristics of Sillim-dong, Gwanak-gu, specializing in food products such as Cookat. GS25 DX Lab is located in the region with the highest instant brewed coffee sales and integrates Cafe25 and retail tech. Door to Seongsu focuses on coffee and alcohol as Seongsu-dong, Seongdong-gu, is a hot place frequented by people in their 20s and 30s.

CU placed about 20% more alcoholic beverages and side dishes in Yeoksam-dong, Gangnam-gu, compared to stores of the same size in other parts of Seoul and also created specialized liquor stores. Analysis of sales data in the area shows that as more people seek various types of alcoholic beverages, the product assortment is expanding accordingly. The currently operating 5,000 wine-specialized stores are also managed based on big data.

A convenience store industry official said, "Because popular products differ by region, we continuously analyze sales data by store," adding, "We also provide guidance to help store owners with ordering through analysis of similar commercial districts and data from the same region."