GS25 Strengthens Food Categories with Generous Home Meals
CU Bets on Whiskey in Alcohol Category
7-Eleven Aims to Become a Renowned Wine House
The three major convenience store chains are focusing their efforts on differentiated product lines to attract customers. Fierce competition is underway to draw customers by emphasizing alcoholic beverages such as whiskey and wine or by promoting convenient meals with excellent cost-effectiveness (performance relative to price). Leveraging accessibility as a weapon, they are achieving solid results through specialized products.
According to industry sources on the 21st, GS25, operated by GS Retail, is boosting sales by emphasizing convenient meals like lunch boxes and gimbap, as well as daily necessities centered on groceries. The iconic item representing this convenience store is the 'Hyejaroun Jipbap' series. The main products are meal replacement convenient foods such as lunch boxes. The brand name is derived from the Korean word 'hyejaropda,' which is used when a product offers abundant content at a reasonable price. Previously, GS25 partnered with actress Kim Hyeja to launch the Kim Hyeja lunch box in 2010, which gained great popularity in the convenience store lunch box market due to its professional-level composition and affordable price, establishing the term as a neologism.
GS25, the God-level Cost-Performance Food Destination
The Kim Hyeja lunch box was discontinued in 2017 following the actress's intention to focus on acting but was reintroduced in February last year due to consumer demand for cost-effective products in the era of high inflation. Following the lunch box, the Hyejaroun Jipbap series sequentially launched gimbap and hamburgers, and as of this month, approximately 55 million units have been sold cumulatively over about 22 months. This equates to 57 units per minute and an average of about 82,000 units per day.
As part of efforts to contribute to price stabilization, GS25's specialized strategy also includes its private brand (PB) Real Price products, which offer high-quality groceries at reasonable prices. Introduced by GS Retail in January this year, Real Price is a price-focused PB characterized by being sold at prices approximately 20-30% lower than similar products on the market.
The product range includes over 40 items such as eggs, meat, tofu, bean sprouts, milk, ramen, and seasoned seaweed. Among these, fresh eggs (15-pack), 1974 milk 900ml (2-pack), and smoked smoked chicken drumsticks (170g) are top-selling products, with sales of these three items exceeding 13 billion KRW. The total sales of Real Price products also reached 40 billion KRW over 11 months. A GS25 representative stated, "We plan to strengthen our MD strategy considering trends, customer convenience, and topicality, further solidifying the convenience store's position as the leading offline consumer platform."
CU Convenience Store Focuses on Whiskey
CU, operated by BGF Retail, is concentrating on whiskey within the alcoholic beverage sector. Notably, last month, CU exclusively introduced the first official single malt whiskey from Kim Changsoo Distillery, known as the first-generation whiskey artisan in Korea (Kim Changsoo Whiskey Gimpo The First Edition 2024). Recently, CU has also promoted authentic Scotch whiskey from Scotland, the birthplace of whiskey, as a cost-effective product priced in the 10,000 KRW range, aiming to popularize Scotch whiskey. 'Gillydu,' produced by 'Angus Dundee,' a Scotch whiskey manufacturer, is offered at 12,900 KRW. Additionally, 'Diablo Devil's Soul' (16,000 KRW), a collaboration with the globally popular game Diablo, was launched exclusively in Korea.
As CU steadily strengthens its whiskey lineup, sales in this category have shown continuous growth. Following the COVID-19 pandemic, the trend of mixology?mixing alcohol with beverages or fruits?has surged, leading to a 99% increase in CU's whiskey sales in 2021 compared to the previous year. From January to October this year, sales rose by 29.3% compared to the same period last year. The product mix including alcoholic beverages and processed foods increased from 42.5% in 2021 to 46.2% in the third quarter of this year, making it the largest share among all product categories.
A BGF Retail representative said, "Recently, whiskey has established itself as the main category leading the convenience store alcoholic beverage market. We plan to continuously secure special products that expand customer choices and lead industry alcohol trends."
Seven Eleven, the Wine Authority
Seven Eleven aims to hold the title of 'Wine Authority' among convenience stores. Since 2021, it has been expanding its art wine lineup featuring labels designed with drawings by French painter Henri Matisse. To date, Seven Eleven has released five Henri Matisse art wine series, including the 'Henri Matisse Trivento Jazz' launched last August. The cumulative sales of these products have reached 600,000 bottles.
Seven Eleven officials are introducing the 'Henri Matisse Trivento Jazz' wine. Photo by Seven Eleven
In August, Paradise Group's wine specialist company Vinoparadise exclusively launched 'Call Me Later by Russian Jack Sauvignon Blanc,' featuring label designs adorned with paintings by actor and painter Ha Jungwoo. This wine initially started with a limited pre-sale at 30 stores, attracting significant attention in the wine market. At the time, it caused open runs at each store, selling out the initial stock in less than 30 minutes.
Seven Eleven's wine sales have also been on the rise since the COVID-19 pandemic. Starting with an approximately 80% increase in sales in this category in 2022 compared to the previous year, sales from January to the 19th of this year rose 40% compared to the same period last year. A Seven Eleven representative stated, "We will solidify our reputation as a wine trend leader and drive growth in the convenience store wine market by focusing on three core strategies: art collaborations, sourcing rare global items, and category balance (strengthening competitiveness beyond red wine)."
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