[AZ on the Move] ① App Orders Delivered to Your Door in 30 Minutes... Lightning-Fast Grocery Delivery

GS The Fresh Gwanak Branch Quick Commerce Experience
From App Order to Delivery Completion in Up to 1 Hour
Service Available for Orders Over 10,000 Won
Careful Checks on Fresh Food, Shelf Life, and Quality
Significant Boost in Offline Sales

Editor's NoteThe retail industry is currently engaged in a fierce delivery war. Unlike in the past, when it could take several days to receive ordered products, delivery times have now been shortened to same-day delivery, including weekends, surpassing even next-day delivery. Not only e-commerce and delivery platforms, but also offline channels such as large supermarkets, grocery stores, and convenience stores have joined this delivery competition. This article delivers a vivid account of the delivery scene, as directly experienced by a reporter in his 40s.

"Your order has been received."

GS Retail operates GS The Fresh Gwanak branch, a supermarket (SSM) located near Seoul National University Station in Bongcheon-dong, Gwanak-gu, Seoul. Upon entering the store's delivery service and customer service area, several announcements in a mechanical voice accompanied by a chime rang out. These signals indicated that a customer's shopping list, requested via the application (app), had been registered.

When the order slip registered on the monitor was printed, it listed detailed product names, quantities, and barcodes for six to seven items, including snacks and carbonated drinks. Hwang Geumnyeo, a store manager with 23 years of experience, handed the reporter a small cart and basket, smiling as she encouraged him to try packing the items himself. She also advised, "You must always check the last four digits of the barcode to make sure the product matches the order."

A customer is examining snacks ordered through quick commerce at GS The Fresh Gwanak branch. Provided by GS Retail

A customer is checking snacks ordered through quick commerce at GS The Fresh Gwanak branch. Provided by GS Retail

Since June 2021, GS The Fresh has been operating a "quick commerce" service through its dedicated app "Woori Dongnae GS," delivering grocery orders to customers in the vicinity of the store within one hour. This service differentiates itself from the standard model, in which orders over 30,000 won from a neighborhood supermarket are delivered within designated 2-3 hour time slots. A GS Retail representative explained, "While services that deliver products to customers who order above a certain amount cannot specify exactly when the delivery will arrive during the day, quick commerce ensures that products arrive as quickly as possible immediately after the order is placed."

To find the products ordered by the customer, I headed to the snack aisle. However, it was not easy to locate each item among the piles of products. Even after scanning up, down, left, and right for the manufacturer, product name, and price tag, the items remained elusive. After nearly ten minutes of searching every corner of the aisle and receiving help from staff, I was finally able to fill the shopping basket with the items listed on the order slip. By then, cold sweat was running down my back. The collected products are packed into a biodegradable bag, which the customer purchases separately for 200 won, and handed over to a rider contracted through a delivery platform. It took about 30 minutes for the first ordered product to leave the store.

A customer is examining vegetables ordered through quick commerce at GS The Fresh Gwanak branch. Provided by GS Retail

Another order slip included fresh products such as vegetables, meat, and dairy. Kim Kyungmin, a manager in the GS Retail Supermarket Division working at the Gwanak branch, guided me to the relevant sections and explained tips for selecting products. For king oyster mushrooms, she said to check that the caps are not broken, and for green onions, to ensure there are no bruises or rotten spots. She also advised, "For fresh foods and milk, it is best to choose products with the longest possible shelf life remaining."

The fresh products collected in this way are packed in insulated bags with ice packs. With skillful hands, Manager Hwang pressed down the ordered products to fit them all into a single bag, emphasizing, "The more bags used, the higher the delivery fee the customer has to pay, so it's important to fit all items into one bag whenever possible." She added, "It's crucial to pack items carefully and accurately so that the customer is not disappointed when checking their order."

To see how quick commerce actually reaches the delivery address, I gathered other ordered items such as tofu, pork cutlet, bread, and yogurt, and boarded a vehicle operated by the Gwanak branch. After navigating winding and steep alleys, we arrived at the customer's requested delivery address and placed the bag of products in front of the door. The delivery driver took a photo and sent it to the customer via text message, completing the process. It took exactly 30 minutes from order receipt to this point. The delivery manager said, "It never takes more than 30 minutes to load the products and depart, and considering distant delivery locations, the total delivery time is about 50 minutes. On rainy or snowy days, the number of orders increases."

A customer is delivering products ordered through quick commerce to the delivery address at GS The Fresh Gwanak branch. Provided by GS Retail

GS The Fresh customers can receive products quickly and conveniently via quick commerce by ordering more than 10,000 won and paying an additional 3,000 won delivery fee. The service is available during store hours, from 10 a.m. to midnight. There is also a reservation service that delivers at a specified time. If the customer picks up the ordered products in person, there is no delivery fee. For products requiring adult verification, such as alcoholic beverages, orders can only be picked up in person.

Quick commerce also aligns with the O4O (Online for Offline) strategy championed by GS Retail CEO Heo Seohong, who took office earlier this year. This is because it not only attracts customers who shop in-store but also generates additional offline store sales through online orders. In fact, the GS The Fresh Gwanak branch handles an average of more than 130 quick commerce orders per day. Quick commerce accounts for about 10% of the store's average daily sales.

At GS The Fresh Gwanak Branch, Store Manager Hwang Geumnyeo is packing quick commerce products ordered by customers.

As of the end of last month, the quick commerce service introduced at 550 GS The Fresh stores nationwide has also shown remarkable results. In 2022, related sales increased by 255.9% compared to the previous year, followed by 85% growth the next year, and 87.2% growth last year. Taking these results into account, CEO Heo promoted the Quick Commerce Division, previously under the Platform BU, to the O4O Division after being appointed as the head of GS Retail in November last year.

Jang Hotak, deputy manager of the Gwanak branch, said, "Since this area is densely populated with officetels and multi-family houses near the university, the number of customers using quick commerce continues to grow regardless of age group. The synergy with the offline store is significant."