Market Leader GS25 Half-Price Parcel Service
Normal Operation Without Separate Promotion
CU Budget Parcel Service "Seize the Peak Season"
Toss & Bungaejangter Receive 500 Won Discount
The "No Delivery Day," initiated in 2020 to guarantee rest for delivery workers, will again be observed on August 14 this year. From Sunday the 13th through the Liberation Day holiday on the 15th, major courier companies such as CJ Logistics, Hanjin, and Lotte Global Logistics will suspend their delivery services. Convenience store parcel services using these couriers will also be partially halted. Parcels received on the 12th will be delivered starting from the 16th.
Convenience store parcel services that use their own delivery networks will continue to collect and deliver during this period. These include GS25’s "Half-Price Delivery" and CU’s "Budget Delivery." These services operate on a system where customers drop off parcels at stores, and recipients pick them up at nearby stores. GS25 first launched this service in 2019, and CU followed as a successor the next year.
Usage of Half-Price Delivery and Budget Delivery has increased recently due to the rise in peer-to-peer secondhand transactions. Although items are delivered about two days later, the significant cost savings on delivery fees are a major advantage. Additionally, since these services operate even on holidays, they offer high convenience by allowing easy access at nearby convenience stores.
While official market share statistics are unavailable, industry insiders believe GS25’s Half-Price Delivery, as the pioneer, holds an advantage over CU’s Budget Delivery. Posts welcoming "GS25 Half-Price Delivery" can be easily found on various secondhand trading sites. An industry source stated, "GS25’s Half-Price Delivery has become a proper noun for convenience store parcel services," adding, "Its market share is overwhelmingly dominant."
CU will conduct various promotions this year during the No Delivery Day period, including shipping fee discounts. The photo shows a customer using the Affordable Parcel Service at a store. Photo by BGF Retail
These services consider No Delivery Day a peak period. Since courier companies do not operate delivery services, demand concentrates on these convenience store parcel services. According to GS25, usage of Half-Price Delivery on No Delivery Day last year surged by 187.6% compared to the previous week. CU’s Budget Delivery also saw an increase of about 95%. It is expected that many people will visit these convenience stores to send parcels on this year’s No Delivery Day as well.
CU has anticipated this demand and launched customer retention efforts. Until the 20th, customers who send Budget Delivery parcels via Toss or Bungaejangter will receive a 500 won discount. CU stated, "With the 500 won discount, the service can be used at a price about 40% cheaper than regular delivery." Additionally, CU will offer a free Americano coupon for customers who reserve Budget Delivery through the Pocket CU app every Monday throughout August.
Meanwhile, GS25, the market leader, is taking a more relaxed approach. GS25 said, "We will operate Half-Price Delivery normally during No Delivery Day but do not plan to run any special promotions." In the first quarter of this year (January to March), GS25’s Half-Price Delivery averaged 1.06 million uses per month, meaning about 35,000 people used the service daily. Analysts believe GS25’s decision not to run separate promotions during No Delivery Day is due to this high consumer usage rate.
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