Since April introduction, increasing by 100 stores monthly
No Brand introduction also boosts existing stores' daily sales by 7%
"Plan to expand introduced stores to about 900 within the year"
Convenience store Emart24 announced on the 24th that the number of stores selling No Brand products has exceeded 500 just over five months after introducing No Brand.
Emart24 has been increasing the number of stores adopting No Brand since April as a way to enhance the competitiveness of franchise stores and boost synergy with Emart.
The exterior of Dongjak Daebang branch, an Emart24 store that introduced No Brand. [Photo by Emart24]
The number of stores with No Brand surpassed 100 within about 50 days and accelerated to reach 500 stores in five months. This means an increase of 100 stores per month, which Emart24 analyzes as evidence that the introduction of No Brand is creating synergy with Emart.
In particular, the newly opened Guro New Town store on the 23rd of last month recorded daily sales of 13 million KRW on its first day, demonstrating the effect of No Brand products. Emart explained that even considering that convenience stores generally have high sales on their opening day, this figure exceeds the industry average.
The average daily sales of all newly opened stores that introduced No Brand this year were more than 50% higher than those of stores opened last year. Converted stores that introduced No Brand products among existing stores also showed results. Analyzing sales data up to the end of August for about 160 converted stores that adopted No Brand, Emart24 found that average daily sales increased by 7% compared to before the introduction of No Brand products.
Choi Woong-jo, the manager of R Guro Sinseong store which introduced No Brand in June, stated that the number of customers visiting the store looking for No Brand products increased, resulting in higher average spending per customer and daily sales compared to before the introduction. Manager Choi said, "There are many single-person households working nearby, and the number of 'Pyeonjangsok' (a newly coined term meaning people who shop at convenience stores) who mainly buy No Brand products that can be easily eaten alone has increased, raising the average spending per customer by about 20% compared to before the introduction of No Brand products."
Meanwhile, among No Brand products, food items such as ▲chocolate chip cookies ▲potato chips ▲charcoal-grilled teriyaki chicken skewers ▲frozen pork belly, as well as daily necessities like ▲3-ply toilet paper ▲thick wet tissues ▲kitchen towels are gaining popularity.
Emart24 plans to expand the range of No Brand products from the current 500 items to about 600 items. The number of stores adopting No Brand is also expected to surpass 900 by the end of the year.
Han Chaeyang, CEO of Emart24, said, "No Brand products, which boast high recognition, are establishing themselves as differentiated products in convenience stores, receiving positive responses from both customers and store managers," adding, "No Brand products, which offer good quality at reasonable prices, are shining even more during this high-inflation period when consumers are focused on cost-effectiveness (performance relative to price)."
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