[Click eStock] "BGF Retail to Benefit from Convenience Store Delivery Service First-Mover Advantage"

Mirae Asset Daewoo Issues 'Buy' Investment Opinion and Sets Target Price at 170,000 Won... Closing Price on 30th at 121,000 Won

[Asia Economy Reporter Kum Boryeong] There is a forecast that BGF Retail will benefit from the first-mover advantage in convenience store delivery services.

According to Mirae Asset Daewoo on the 31st, the company gaining the first-mover advantage in convenience store delivery services is BGF Retail. BGF Retail, which began expanding its delivery service in earnest last year, currently has about 3,100 stores capable of delivery. By the end of the year, it plans to expand to 5,000 stores. In this case, delivery will be possible in major commercial districts nationwide.

The delivery service partially offsets the decline in customer numbers caused by bad weather. However, due to unfamiliarity with convenience store delivery services, the contribution of delivery sales to overall convenience store sales remains relatively low.

Researcher Kim Myung-joo of Mirae Asset Daewoo explained, "With the full operation of the Central Kitchen (CK) and differentiated marketing such as Peonstorang in the future, BGF Retail is expected to secure competitiveness in fresh foods (FF). Providing fast delivery services through stores is expected to create new demand in the market, similar to lunchboxes in the past."

The popularization of fast delivery is analyzed as a positive trend for convenience stores. Since convenience stores have the distribution channels closest to consumers, providing fast delivery services can partially alleviate concerns about oligopoly within the industry.

Mirae Asset Daewoo gave a 'Buy' investment opinion on BGF Retail but lowered the target price from the previous 220,000 KRW to 170,000 KRW. Researcher Kim said, "The target price was lowered due to sluggish sales in the first and second quarters caused by COVID-19. Normal sales are expected from the second half of the year as COVID-19 concerns ease." The closing price on the 30th was 121,000 KRW.

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