Convenience Stores Alone Smiled... Franchise Stores and Sales Increased

[Asia Economy Reporter Seungjin Lee] Convenience stores, the only sector thriving amid the recession, also shone in the startup market.

According to the industry on the 27th, as of last November, the number of franchise stores for the top five brands?GS25, CU, 7-Eleven, Emart24, and Ministop?reached 44,744. Despite an increase of more than 2,000 franchise stores over the past two years, sales per store have also risen.

The average annual sales per convenience store increased from 569 million KRW in 2017 to 571 million KRW in 2018. It was reported that there were no stores with annual sales below 100 million KRW among all convenience store franchises. The store opening rate was 11.8%, higher than the closure rate of 6.0%. The average brand survival period was 11 years and 6 months, longer than the overall retail brand average of 11 years and 3 months.

Participants continue to attend startup briefing sessions held biweekly or monthly across the country. In regional hubs such as Seoul and Busan, up to a hundred people reportedly attend these startup briefings.

The convenience store industry also launched various mutual growth support plans and assistance programs for new franchisees earlier this year to attract store owners. GS25 introduced a mutual growth support system worth 150 billion KRW, including promotional expense support for stores with poor sales. CU operates a lifecycle management program for franchises, including initial stabilization support, electricity and product disposal assistance, and minimizing burdens upon store closure. 7-Eleven provided support for franchisees’ loan interest, among other various support measures from the industry.

The convenience store industry expects this startup enthusiasm to continue for the time being. An industry official explained, "There are still places in small provincial cities where convenience stores are hard to find, so there is high demand for startups," adding, "The transformation of convenience stores into comprehensive lifestyle convenience facilities is also a great attraction for those wanting to start a business."

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