GS25 Expands Unique Stores with Local Flavors Nationwide... Competition Heats Up for 'Distinctive Convenience Stores'

Hanwha Eagles Theme Store Opens in Daejeon This Month
Plans to Expand with Region-Specific Concepts
Competition for Specialized Store Openings Rekindled After a Quiet Period

GS Retail's convenience store GS25 is opening flagship stores (specialized stores) featuring regional characteristics across the country. Attention is focused on whether this will ignite the competition for specialized stores in the convenience store industry, which had been in a lull.

According to industry sources on the 8th, GS25 is considering introducing specialized stores of the same nature as the Timeworld branch, which opened earlier this month in Daejeon themed around the professional baseball team Hanwha Eagles, to other regions as well. The concept is not limited to sports but focuses on incorporating regional characteristics. A GS Retail official said, "Daejeon is the home of the Hanwha Eagles, so we chose baseball as the concept considering the symbolism representing the Chungcheong area and the loyalty of local sports fans. In the future, concepts for other regions will be decided after comprehensively reviewing regional economic revitalization and customer satisfaction."

GS25 plans to open two more specialized stores themed around the Hanwha Eagles in key areas of the Chungcheong region besides Daejeon.

Interior view of the Time World store opened by GS25 in Dunsan-dong, Seo-gu, Daejeon, themed around the professional baseball team Hanwha Eagles.
[Photo by GS Retail]

GS25's nationwide expansion of specialized stores with regional characteristics is part of enhancing its brand image. Convenience store chains, including GS25, have so far opened specialized stores mainly in Seoul and the metropolitan area. However, they judged that specialized stores for local consumers were virtually nonexistent. A GS Retail official said, "By expanding specialized stores in various regions, we expect to revitalize the GS25 brand image in the provinces."

So far, GS25 has not accelerated the expansion of flagship stores since opening 'DOOR to Seongsu' in Seongsu-dong, Seoul, in November 2022. DOOR to Seongsu gained popularity mainly among the MZ generation (Millennials + Generation Z) by showcasing various character collaboration products, and GS25 considered expanding a second DOOR to store, but there has been no progress so far.

On the other hand, CU, which forms one axis of the 'top two convenience stores' system along with GS25, has continuously expanded specialized stores such as 'K-Planet 1st Branch,' 'The Magic Gate CU,' and 'CU Hongdae Sangsang Branch.' The K-Planet 1st Branch, located in Seoul Olympic Park, is a specialized store with the concept that CU's brand character 'Kiru' opened a convenience store in his hometown, K-Planet. Also, The Magic Gate CU, located in Everland, Yongin, succeeded in differentiation with the concept of 'a door leading to the land of dreams and fantasy.'

Interior view of the specialized store 'CU Hongdae Sangsangjeom,' a convenience store CU that opened in Hongdae, Seoul, with the concept of a ramen library.
[Photo by BGF Retail]

As GS25 expands specialized stores nationwide with regional characteristics, competition for flagship store openings in the convenience store industry is expected to intensify. Specialized stores are considered a survival strategy in the saturated domestic convenience store market. Currently, they play a leading role in sales with differentiated space design and concepts from regular stores. DOOR to Seongsu and K-Planet 1st Branch, regarded as the first specialized stores of GS25 and CU respectively, have succeeded in attracting customers since opening, with sales nearly doubling compared to the same period last year.

As GS25 expands specialized stores, Seven Eleven and Emart24 are also expected to hurry to open flagship stores. Previously, Seven Eleven and Emart24 introduced 'Food Dream 2.0 1st Branch' and 'R Gwangalli Center Branch,' respectively. An industry insider said, "Differentiation has become an essential condition for survival in the saturated domestic convenience store market," adding, "The competition to expand specialized stores with unique concepts will continue."