[Featured Stocks] BGF Retail and GS Retail Rise Over 3%... Convenience Store Stocks Enter Peak Season

Overlap of Peak Season in August and Paris Olympics Period
Stock Market Analyzes as Earnings Improvement Expected + Low Price Buying Opportunity

Convenience store stocks are showing strength for the first time in a while. With the peak season for convenience stores in August approaching, expectations of improved performance and the previously stagnant stock prices are drawing buying interest.

As of 10:35 AM on the 2nd, GS Retail is trading at 22,350 KRW, up 3.95% (850 KRW) from the previous close. GS Retail operates the convenience store chain 'GS25.' Another convenience store operator, BGF Retail, which runs 'CU,' is also trading higher at 112,100 KRW, up 3.51% (3,800 KRW).

The simultaneous rise of GS Retail and BGF Retail, both competing for the top spot in the convenience store industry, is a rare occurrence. The convenience store sector, considered a representative domestic industry, has seen its stock prices stagnate amid concerns that the number of stores has reached saturation. However, with the arrival of the peak season in August, securities analysts are forecasting performance improvements and view this as an opportunity for low-price buying.

Researcher Kim Hyemi of Sangsangin Securities stated, "In the case of BGF Retail, the burden of a low sales base per store will be alleviated from the second half of the year, increasing the likelihood of a turnaround." She added, "In the third quarter, which marks the peak season, sales growth will be driven by high-margin items such as beverages, alcoholic drinks, and ice cream, leading to improved profitability." Attention is particularly focused on whether the overlap of the peak season and the Paris Olympics can bring about a positive shift in sentiment. During the 2021 Tokyo Olympics, BGF Retail and GS Retail stock prices reached around 160,000 KRW and 36,000 KRW, respectively.