Olive Young Faces Sell-Out Frenzy, Convenience Store Whisky Sales Surge... Consumption Coupons Spark Domestic Demand

Sales Rise at GS25, CU, and 7-Eleven
Ready-to-Eat Meals, Alcohol, Beverages, and Summer Goods See Increased Sales
Franchise Restaurants Also Experience Growth in Visitors and Orders
Large Supermarkets Excluded from Coupon Use Attract Customers to Rental Stores

#On the afternoon of July 26, at the CJ Olive Young store in Incheon. This location, operated as a franchise, is one of the designated places to use the Minsheng Recovery Consumption Coupon, implemented by the Lee Jaemyung administration to boost the economy. Following the sequential issuance of consumption coupons based on birth year starting July 21, the store was packed with visitors on the first weekend. Coupled with the three-day sale (Ollyeong Day) that began on July 25, many shelves were left empty throughout the store. A store representative said, "Sales for the day increased by about four to five times compared to usual," and added, "We placed orders as usual, but the number of customers was much higher than expected, so we had to bring out all the goods from the warehouse."

On the 26th, when the Minsheng Recovery Consumption Coupons began to be used, a CJ Olive Young store in Incheon was bustling with visitors. Photo by Minji Lee

With the Lee Jaemyung administration distributing Minsheng Recovery Consumption Coupons worth 13.2 trillion won to the entire population to stimulate domestic demand, designated small business franchisees with annual sales of less than 3 billion won have already seen a rebound in sales in the first week. Attention is focused on whether these consumption coupons will break the severe domestic demand slump that continued from the end of last year’s rebellion crisis through the first half of this year, and serve as a priming pump for increased consumption.

According to the distribution industry on July 28, GS25, a convenience store operated by GS Retail, saw sales of ready-to-eat foods such as soup, stew, and hot pot rise by 338% from July 22 to 27 compared to the same days of the previous month. During the same period, domestic beef sales increased by 253%, seafood by 213%, and chicken by 106.1%. Sales of fresh foods, including packaged kimchi, pork, fruit, and leafy vegetables, also rose by more than 50%.

A consumer coupon application notice is placed on the first floor of Gwanak District Office in Seoul. Photo by Yonhap News

At CU, a convenience store operated by BGF Retail, sales of alcoholic beverages and drinks, which are in higher demand during hot weather, surged during the same period. Notably, whisky sales rose by 41.1% as customers took advantage of the consumption coupons. Beer and highball sales also grew by nearly 30%, and beverage sales, including bottled water, health drinks, and carbonated beverages, increased by an average of 41.4%.

At 7-Eleven, operated by Korea Seven, side dish sales rose by 80% compared to the same days of the previous month, while premium ice cream, diapers, and beauty products each saw a 60% increase. Meanwhile, at Emart24, a convenience store under the Shinsegae Group, sales of small home appliances such as portable fans jumped by 386%, and grain sales, including rice and mixed grains, increased by 114%.

Restaurants, including franchise chains serving chicken and burgers as well as independently owned eateries, also saw an increase in visitors and sales. Dining Brand Group’s BHC reported that sales from July 22 to 27 increased by about 10% compared to usual. Compared to the same period last year, orders rose by an average of 12%. Mom's Touch launched a discount promotion through the public delivery application "Ttaenggyeoyo" in conjunction with the consumption coupon program, resulting in a 51% increase in app sales from July 22 to 27 compared to the previous week.

During the same period, Lotte GRS’s Lotteria franchise sales increased by about 19% compared to the previous week. An employee at an eel restaurant operating in a metropolitan area tourist destination said, "Many customers asked if they could use the consumption coupons over the weekend," and added, "Some customers visited for the first time in years just to use the coupons."

Meanwhile, large supermarkets, which were excluded from the list of offline distribution channels where the consumption coupons can be used, did not disclose specific sales figures but stated that the sales growth rate in the first week after coupon distribution dropped to a single-digit percentage compared to the same period last year, indicating some impact. As a result, small business rental stores located within supermarkets are emphasizing that consumption coupons can be used at their locations to attract customers.