Convenience Store 3 Companies' Pepero Sales Down 2-8%
Pepero Day Including Weekend... 'Endemic Expectations' Diminished
Demand for Light Sharing at Weekday Offices and Schools Decreases
Some Seek Alternatives Like Pepero-Shaped Bakery Items Increasing
The distribution industry’s anticipated 'Pepero Day effect' in November fell short of expectations. With the endemic phase (periodic outbreaks of infectious diseases) easing and face-to-face interactions becoming freer, it was expected that 'Pepero communication' would also increase, but the effect was diminished as Pepero Day fell on a weekend.
According to the distribution industry on the 13th, the Pepero Day sales results at major convenience stores did not meet expectations. GS25’s sales of Pepero Day products from the 1st to the 11th of this month decreased by 2.6% compared to the same period last year. Single item sales dropped by 1.6%, and set sales fell by 4.8%. Despite the popularity of bouquet planning sets, heart Pepero sets, and almond Pepero sets, overall sales declined. During the same period, Seven Eleven and CU also saw related sales decrease by 5% and 8.2%, respectively. CU explained, "the fact that the event day fell on a weekend and a temperature drop of around 10 degrees compared to last year affected sales," adding, "Pre-event sales before the 11th increased by 12% year-on-year according to the day index, but sales on the event day, November 11th, decreased by 19% compared to last year."
Pepero Day is recognized not only as a day to confess feelings like Valentine’s Day but also as a day to casually share Pepero within groups such as schools and workplaces. This led to high demand for buying a few single Pepero sticks on the way to school or work. This year, with the end of remote work due to COVID-19, it was expected that demand for meeting in person and sharing Pepero would increase, but the effect was diminished as Pepero Day coincided with the weekend. There were fewer people than expected purchasing Pepero casually for sharing before the day itself.
Year after year, more people have sought unique Pepero-shaped desserts and bakery items made at cafes or bakeries rather than easily available commercial Pepero, which also contributed to the stagnation in Pepero sales. On the weekend Pepero Day, individuals in personal relationships such as couples shared not only Pepero but also sweet desserts like chocolates and wine to enhance the atmosphere, increasing compared to last year. During the same period, GS25’s chocolate sales rose by 5.2%, and wine sales grew by 18.9%.
Perceiving this trend, the convenience store industry rushed to release Pepero Day-specialized products that are popular among the well-selling generation (Generation Z + Alpha generation) but rare. However, these goods set products were released as limited editions, making them hard to obtain, and their price burden prevented them from generating sales as high as expected. According to CU, products priced under 5,000 won accounted for 52.6% of sales, more than half, with 14.3% for 5,000 to under 10,000 won, 27.7% for 10,000 to under 20,000 won, and 5.4% for over 20,000 won, showing high demand for mid- to low-priced products.
The industry quickly shifted its focus to year-end events such as Black Friday and Christmas. Since expectations were high for Pepero Day instead of a 'quiet Halloween,' they plan to concentrate marketing efforts to achieve better results in upcoming event marketing. GS25 has already started the 'Living & Electronics Black Friday' event targeting local shoppers ahead of the year-end. Targeting Black Friday shopping demand, they are selling about 100 products, from small heating appliances to TVs, vacuum cleaners, and gold bars, at discounts of up to 45%.
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