Convenience Stores Even COVID-19 Avoided

Convenience Stores Mainly Used by Local Residents
Preferred Over Supermarkets with Unspecified Visitors
Increased Sales of Lunch Boxes, Gimbap, and Ramen

(Photo by Seven Eleven)

[Asia Economy Reporter Lee Seung-jin] While major offline retail sectors such as department stores and supermarkets have been struggling with declining performance during the first month of the outbreak of the novel coronavirus disease (COVID-19), convenience stores have continued to see sales growth.

According to the convenience store industry on the 19th, sales of major products have all risen since the first confirmed COVID-19 case in Korea on the 20th of last month. In the case of GS25, lunchbox sales increased by 13.1% compared to the previous year from the 20th of last month to the 16th of this month.

During the same period, CU reported that sales of lunchboxes, gimbap, and ramen rose by 18.8%, 23.7%, and 17.3% respectively compared to the same period last year. Emart24 saw an average sales growth rate of 31.9% for related products, showing a significant increase, and Seven Eleven also experienced up to an 18% increase in sales of related products.

Notably, lunchbox sales paid through GS25’s exclusive application, 'My Fridge,' increased by 45.9% during the same period. My Fridge is a service that allows customers to pre-order lunchboxes via the app and pick them up at their desired time. This appears to be due to an increase in consumers opting to have simple meals at home instead of dining out.

Convenience stores also greatly benefited from the Valentine’s Day special. From the 1st to the 14th, sales of Valentine’s Day-related products at GS25, CU, Seven Eleven, and Emart24 all rose sharply by 13% to 50% compared to the previous year. Delivery services were especially popular. Since CU started delivery services in April last year, the number of delivery orders has increased by up to 67% compared to usual after the COVID-19 outbreak.

Delivery orders for Valentine’s Day promotional products from the 10th to the 15th increased by 88% compared to normal. Honey Bees Dingdong, which allows 24-hour ordering at about 1,400 GS25 stores mainly in Gangnam-gu and Songpa-gu, Seoul, records over 1,000 orders per month on average.

As delivery services gained popularity due to the spread of the contactless trend, Emart24 also joined the convenience store delivery market this year by partnering with Yogiyo to offer delivery services at 35 directly operated stores. Seven Eleven also started delivery services on the 11th in collaboration with Yogiyo and the IT-based logistics startup Mesh Korea’s 'Vroong.'

The convenience store industry emphasized that, unlike large shopping malls frequented by many unspecified people, convenience stores are perceived as relatively safe since they are mainly used by residents within the same area. Furthermore, by continuously expanding their service areas to include various food items and lifestyle convenience services such as parcel storage, convenience stores have been the only offline retail channel to record growth.

This content was produced with the assistance of AI translation services.