Impact of High Inflation... Convenience Store 'Closing Discounts' Increase 6.7 Times in Three Months

GS25 Service Data Analysis Results
Usage Rate of 2030 Age Group Exceeds 70%

As consumer prices continue to soar, the sales of end-of-day discounted products at convenience stores have recently increased significantly.

GS25, a convenience store operated by GS Retail, announced on the 4th that the number of products registered for end-of-day discounts increased 6.7 times last month compared to the end of last year, based on an analysis of data from the ‘End-of-Day Discount’ service launched at the end of November last year.

The end-of-day discount is a service available through GS25’s exclusive app, ‘Uri Dongnae GS,’ which sells fresh food (FF) nearing its expiration date at up to 45% off. When food items close to their expiration (from 3 hours to 45 minutes before expiry) become available, customers order via the app for pickup.

Looking into the detailed data of the end-of-day discount, users in their 20s accounted for 38%, those in their 30s 34%, and those in their 40s 16%, with customers in their 20s and 30s making up over 70%. Additionally, sales were higher in the evening (53%) than in the morning (47%), and sales were strong in office areas, academy districts, and residential neighborhoods. By product category, sales were highest for lunch boxes, sandwiches, gimbap, and rice balls, in that order.

From the perspective of store operations and profitability, the service also proved effective. An examination of 100 stores excelling in utilizing end-of-day discounts showed that over 70% of registered near-expiration products were sold, resulting in an 11.8% improvement in the disposal rate of FF products.

GS25 expects that amid high inflation, the end-of-day discount will greatly contribute to supporting consumers’ frugal spending and increasing franchisees’ profits by reducing disposal costs. Accordingly, the company plans to grow this service as a core offering by diversifying the range of discounted items this year.

Lim Jong-ho, head of GS Retail’s O4O (Online for Offline) Operations Support Team, said, “The end-of-day discount service provides economic benefits to consumers amid high inflation and helps sellers increase profits, creating a positive product circulation structure and a win-win effect. We plan to further strengthen the service’s competitiveness and focus on nurturing it as an excellent model that satisfies both consumers and sellers.”