Three Companies' App Sales Revenue Growth Rate Around 200% Last Year
Increased Usage Due to Strengthened Online-Offline Connectivity
The 'Big 3 convenience stores'?CU, GS25, and Seven Eleven?are rapidly increasing related sales by enhancing the connectivity between online and offline channels, such as expanding the number of items handled within their applications (apps) and broadening service functions.
According to industry sources on the 9th, all three convenience stores recorded nearly 200% growth in app sales revenue last year. CU's sales through the 'Pocket CU' app increased by 183.3% compared to the previous year. Following 199.7% growth in 2020 and 388.6% in 2021, this marks three consecutive years of triple-digit growth. This year, app sales from January to February continued the strong growth trend, rising 219.5% compared to the same period last year.
GS25 also saw a 197.7% increase in sales through GS Retail's integrated app 'Our Neighborhood GS' last year. This continued the growth momentum despite already achieving over 500% high growth in 2021. From January to February this year, app sales increased by 142.3% year-on-year. Seven Eleven also experienced a high growth rate in app sales, with a 70% increase in 2021 followed by 200% last year.
The explosive growth in convenience store app sales is due to the continuously strengthened linkage between offline stores and mobile apps. CU invested 10 billion KRW last year to rebuild Pocket CU into an online-offline one-stop shopping platform that supports delivery, pickup, home delivery, and reservation purchases. Since the rebuild, the most frequently used feature by app users is the 'All Products Inventory Inquiry' service, which provides real-time stock quantities for all products by store, serving as a window to preview popular items.
For delivery and pickup services, the scope was expanded to include all products. When customers add desired products to their cart, an algorithm matches the optimal store based on inventory status, distance, and other factors. After the service revamp, the number of active Pocket CU members increased from 2.5 million to 3.5 million within a year. In an era where contactless purchasing has become the norm, convenience store operators have focused on providing an experience within the app that is equivalent to visiting the store in person, which has proven effective.
The expansion of the number of items handled to provide the same experience online and offline is also progressing rapidly. GS25 currently handles about 8,000 items on its app, including approximately 3,000 items for convenience store delivery and pickup and about 5,000 items for Wine25 Plus. A GS25 representative explained, "We are essentially operating all the products handled in offline stores identically on mobile." CU also expanded the number of items handled within its app by about 25% over the past year, from around 400 items at the beginning of last year to 500 items currently, while Seven Eleven increased from about 480 items to 650 items during the same period.
In addition to strengthening online-offline connectivity, various benefits provided when purchasing through the app also act as incentives for consumers. Seven Eleven is increasing mobile purchase incentives by selling Seven Mobile Gift Certificates at a 5% discount through the 'Seven App.' Furthermore, in the era of high inflation, they are continuously expanding subscription membership services that allow customers to use major products at discounted prices by paying a monthly fee.
The convenience store industry plans to further enhance online competitiveness this year by expanding various in-app service functions. A CU representative said, "This year, we plan to lead the e-commerce trend in the convenience store industry by advancing existing services to strengthen the linkage between offline stores and mobile apps, while continuously developing new services."
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