BGF Retail Advances 200 Billion KRW Settlement Payments
GS Retail Also Pays 180 Billion KRW in Settlement and Goods Payments
The domestic convenience store industry is promoting mutual growth by making early payments to franchise stores and partner companies ahead of the Lunar New Year holiday.
BGF Retail, which operates the convenience store CU, announced on the 19th that it will make early payments of 200 billion KRW in settlement funds to franchise stores and small and medium-sized partner companies in celebration of the Lunar New Year. The payment targets include about 17,000 franchise stores nationwide and approximately 100 small and medium-sized partner companies that trade products with BGF Retail. Early payments will be made sequentially starting from early February. This is up to about 20 days earlier than the existing payment date.
BGF Retail is implementing this early payment of settlement funds to help franchise stores and partner companies that may be experiencing difficulties in fund management due to the worsening domestic and international economic environment. Since 2013, BGF Retail has been providing early payments of settlement funds ahead of holidays when cash usage increases, to assist franchise stores and partner companies in managing their funds.
In this way, BGF Retail supports the growth of franchise stores and small and medium-sized partner companies through various support programs, including smooth fund management assistance. Since 2022, BGF Retail has operated a virtuous cycle mutual growth system that goes beyond simple cost support, including ▲new product introduction support funds ▲waste disposal support funds ▲operational incentives.
Additionally, welfare programs are implemented for franchise store owners, including ▲corporate condo and resort support ▲exclusive welfare mall operation ▲comprehensive health checkup support ▲labor, legal, and tax consultation support. For small and medium-sized partner companies, mutual growth programs include ▲establishment of a mutual cooperation fund ▲operation of education programs to enhance partner capabilities and performance ▲discovery and market development of excellent partner products ▲introduction of a co-growth mall for small and medium-sized enterprise products.
Son Ji-wook, Head of Communications at BGF Retail, said, "In line with our corporate identity as a good friend, we are continuously making efforts for mutual growth with franchise stores and small and medium-sized partner companies. Going forward, BGF Retail will actively expand effective mutual growth support programs at the highest level in the industry."
GS Retail, which operates convenience store GS25 and home shopping GS Shop, also announced the day before that it will make early payments of settlement funds and goods payments totaling 180 billion KRW to GS25 franchise store owners and partner companies in celebration of the Lunar New Year.
GS Retail plans to make early payments sequentially starting from the 31st of this month for settlement funds to GS25 franchise store owners and goods payments to partner companies supplying products. This schedule is up to 12 days earlier than the existing payment date. The company explained that it hastened the early payment schedule in consideration of the difficult economic environment ahead of the Lunar New Year.
GS Retail expects that with this early payment, GS25 franchise store owners will be able to secure emergency funds needed for the holiday, and partner companies supplying goods will be able to manage their funds more smoothly.
Meanwhile, GS Retail operates various mutual growth and win-win support systems beyond this early payment for the holiday. Since 2016, the GS25 headquarters has established a foundation for mutual growth with franchise store owners through a mutual growth agreement, and supports smooth fund liquidity for partner companies through support systems such as 100% cash payments every 10 days and mutual growth funds.
A GS Retail official said, "Considering the difficult economic situation ahead of the Lunar New Year, a major national holiday, we quickly secured early payment funds to support franchise store owners and partner companies. We will continue to accelerate the development of support systems that can achieve sustainable mutual growth with franchise stores and partner companies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
