[Report] "Is this really convenience store bread?"... The Competitive Edge of 'Dessert Hotspots' Breaking Through Prestigious Department Stores

Department Store Brings Foot Traffic...
Convenience Store Gains 'Dessert Hotspot' Certification Synergy

On the morning of the 11th, the 'Dessert CU' pop-up store located in Sweet Park on the B1 floor of Shinsegae Department Store Gangnam branch. Visitors are looking at the display shelves. (Photo by Jaehyun Park)

"Is this really a dessert made by a convenience store?"

In the Sweet Park on the B1 floor of Shinsegae Department Store Gangnam Branch in Seoul, amidst a lineup of famous domestic and international dessert brands, a familiar logo was spotted. It was CU's 'Dessert CU' pop-up store, the first convenience store brand to open in a department store. Store employees were busy packaging ordered desserts while wearing purple caps emblazoned with the CU logo. On a relatively quiet weekday, customers stopped by and admired the display cases, repeatedly expressing amazement. Kang (27), a resident of Seodaemun-gu, Seoul, purchased 'Matpolly Cannoli' and 'Heinz Salad Bread,' saying, "I came to buy desserts and happened to discover the store, so I bought some out of curiosity," adding, "A pop-up store collaboration between a convenience store and a department store is an interesting attempt."

The symbol of premiumization, the department store, and the value-for-money-focused convenience store joined hands. CU, operated by BGF Retail, opened a pop-up store for the first time in the industry at Shinsegae Department Store Gangnam Branch. The products sold at this pop-up store are nine types of desserts reinterpreted from CU's popular series. Prices range from 4,000 to 6,000 KRW, somewhat higher than typical convenience store desserts. This price range was negotiated with the department store during the preparation of the pop-up store. The convenience store launch price is expected to be in the high 2,000 KRW range.

Department store brings foot traffic... Convenience store gains 'dessert hotspot' certification synergy

CU saw considerable success last year by launching several dessert products. Last year, the Yonsei Milk Cream Bread series and Matpolly Tiramisu series were launched and gained great popularity. Last month, CU introduced the industry's first premium dessert brand, 'Dangwajeom.' Since the launch of Yonsei Milk Cream Bread in 2022, CU's annual dessert sales have increased significantly each year. After growing 120.6% in 2022 compared to the previous year, sales increased by 104.4% in 2023. Last year's growth rate was 25.1%.

This pop-up store is interpreted as proof of the competitiveness of convenience store desserts. Shinsegae Department Store recently unveiled Sweet Park, a premium dessert specialty zone, featuring bakeries such as Beton, famous for salt bread, and Buchang Bakery, known for walnut pastries. The appearance of convenience store desserts in Sweet Park signifies that their quality is recognized as comparable to famous dessert brands.

Nine types of desserts sold at the pop-up store. Prices range from 4,000 to 6,000 won. (Photo by Jaehyun Park)

Kim Su-hyung, a buyer at Shinsegae Department Store, said, "CU introduced new desserts like Yonsei Milk Cream Bread and Napoli Matpia Chestnut Tiramisu, which gained great popularity," adding, "They are highly regarded as desserts loved by the general public." A BGF Retail official stated, "The products showcased at the pop-up store will be launched in stores later as finished products," and added, "We hope the pop-up store helps establish the perception that CU can also make premium desserts."

Both parties expect synergy in the dessert market through collaboration. Shinsegae Department Store aims to increase foot traffic through CU desserts, while CU can solidify its reputation as a 'dessert hotspot.' A Shinsegae Department Store official said, "This season marks the introduction of new desserts for White Day, and Sweet Park is celebrating its first anniversary with themed events. We judged that CU desserts, which have both popularity and buzz, would definitely bring in customers."

CU plans to build a differentiated position within the convenience store industry through desserts. A BGF Retail official explained, "Convenience store products tend to be similar, but desserts are an area where differentiation is possible," adding, "We will continue to lead the market as a dessert hotspot in convenience stores."