GS25 Secures Operation Rights for 227 Navy PX Stores... Maintains Industry No.1 Position

[Asia Economy Reporter Seungjin Lee] GS25 has maintained its position as the industry leader by being reselected as the entrusted operator of the Navy unit stores (PX) on the 19th.

On this day, GS25 won the bid for the 'Navy Mart Entrusted Operation Private Business Operator Selection' by the Military Welfare Corporation, securing the operating rights for 227 Navy PX stores until June 30, 2025.

GS25 initially won the business rights in the first bid in 2010 and has been operating the Navy PX for a five-year term. The operating rights were re-bid in 2015, with the contract set to expire on June 30 of this year. The target stores are divided into direct management and franchises according to the operation method: unit entrusted (169 stores), private direct management (52 stores), and snack corners (6 stores), but GS25 will hold all rights.

This bid attracted attention as a large-scale auction where the first and second places in the convenience store industry could change. As of November last year, GS25 had 13,899 stores, and CU had 13,820 stores, a difference of only 79 stores.

The bid involved the top two convenience store companies, GS25 and CU. An industry insider said, "The discount rate on sales determined the outcome," adding, "It is known that GS25 offered a higher discount rate than CU." The Military Welfare Corporation set the minimum bid standard sales discount rate at 35% for this bid.

GS25 stated, "The reason we have continuously pursued the Navy PX business for over 10 years is considering national public interest and social contribution," and added, "With the successful bid for the Navy PX operation, we expect to improve profitability based on the operational know-how accumulated over the past 10 years."

They continued, "In the future, rather than clinging to maintaining the number one position in store count, we will carefully participate with a long-term perspective after judging whether the bid target business aligns with the values we pursue and from the viewpoint of sound management."

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