Baedal Minjok Convenience Store Order Share Over 70%
Average Daily Delivery Sales Increase by 25% During Jangma Season
4,000~7,000 Won Discount on Delivery Orders Over 20,000 Won
CU has been found to hold the highest market share among convenience store brands on Baedal Minjok, the largest delivery platform in South Korea.
BGF Retail, which operates the convenience store CU, announced on the 15th that CU recorded over 70% market share in convenience store delivery orders on Baedal Minjok in July.
According to sales analysis by BGF Retail's big data team, over the past three years during the monsoon season, the number of CU delivery service uses increased by 76.6% compared to the clear weather week before. In fact, from the 1st to the 10th of this month, when the full monsoon season began, CU’s daily average sales on Baemin Store increased by 25.1% compared to the same period last month. Daily delivery sales per store also rose by 12.7% compared to the same period last year.
CU analyzed that during the monsoon season, customers tended to avoid going out due to bad weather, leading to a surge in demand for convenience store delivery focused on easy-to-prepare products.
Looking at the sales growth rate by item during this period, ▲Gimbap (300.1%) ▲Dosirak (241.8%) ▲Ramen (30.8%) ▲Instantly prepared meals (24.1%) among meal substitutes and ▲Bread (14.7%) ▲Desserts (29.5%) ▲Snacks (29.2%) ▲Beverages (12.5%) among snacks were popular.
Additionally, analyzing the sales proportion by location for total delivery sales up to the 10th of this month showed ▲Residential areas (86.9%) ▲Office districts (5.3%) ▲Entertainment districts (3.3%) in that order. Notably, the sales proportion in office districts was 2.7% until the 10th of the previous month when the weather was clear, indicating an increase in delivery demand from offices during the monsoon season.
CU was the first in the industry to start convenience store delivery services in 2019 by partnering with Yogiyo. Currently, CU has partnerships with quick commerce services including its own commerce app Pocket CU, Baedal Minjok, Yogiyo, Naver, Baedal Teukgeup, and Happy Order. CU operates pickup and delivery services at over 12,000 stores nationwide. With increasing customer demand, about 480 new stores started the service this month as well.
A BGF Retail official stated, "Thanks to being the fastest in the convenience store industry to join delivery platforms, we have an advantage in various indicators that reflect customer loyalty such as average spending per customer and repurchase rate," adding, "Going forward, CU will continue to invest in quick commerce to provide customers with a convenient shopping environment by leveraging the largest store network nationwide."
CU expects the monsoon season to continue until the end of this month and will strengthen delivery and pickup discount promotions to assist customer convenience. The ongoing discount event of 3,000 to 5,000 KRW off purchases over 20,000 KRW on Pocket CU, Baemin Store, Yogiyo, Happy Order, and Baedal Teukgeup will be increased to 4,000 to 7,000 KRW this month. The in-house discount event offering 'Buy 1 Get 1 Free' and discounts on about 100 products from the 1st to the 15th of every month will also be available equally through delivery and pickup.
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