Convenience Stores Rush... CU Sees 10x Increase in Delivery Orders
First in Industry to Implement Delivery Service for 1 Year
Partnered with Yogiyo... Service Available at 5,000 Locations Nationwide
[Asia Economy Reporter Cha Min-young] The era of ordering convenience store delivery has arrived.
On the 2nd, CU convenience store celebrated the first anniversary of its delivery service, the first of its kind in the industry, with the number of orders in May increasing 10.4 times compared to the initial launch period.
CU started its convenience store delivery service last April in partnership with the delivery application 'Yogiyo' and currently operates over 5,000 stores nationwide, establishing the largest service network in the industry. Delivery is available 24 hours in major urban areas as well as in small towns and townships in rural regions.
The delivery service performance surged before and after the outbreak of the novel coronavirus disease (COVID-19) this year. As contactless consumption became mainstream, the number of orders in the recent three months (March to May) increased by 59.8% compared to the previous three months (December to February). In particular, the sales composition ratio during evening hours increased by 7% compared to usual, and the proportion of loyal customers who use the service more than twice a month doubled from the mid-20% range to 42%.
Delivery-exclusive products are also a key to popularity. Last month, CU held a 'CU Bibimbap One Meal Set' event with Yogiyo for about ten days targeting people staying at home. The set, tailored for single-person households, included Jeju black pork bibimbap, the private brand (PB) 'Heyroo' Sokcho red crab ramen, and Delafe sikhye (sweet rice drink), selling over 5,000 units during the event period. Delivery orders also increased by 88.6% compared to the previous month during the same period.
As delivery usage continues to grow, CU will diversify set menus and expand related promotions such as price discounts starting this month. Three types of delivery-exclusive products will be offered with a 3,000 KRW discount: a popular late-night snack set, a four-person meal set, and a brunch set. The popular late-night snack set includes giant pizza, smoked chicken, fish cake tteokbokki, and cola. The four-person meal set contains home meal replacement (HMR) products such as Ottogi delicious rice (4 packs), 3-minute curry, earthen pot soybean paste stew, and bite-sized meatballs. The brunch set features mini croissants, kielbasa sausage, and Americano coffee.
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Hong Won-jin, product planner (MD) of BGF Retail Service Platform Team, said, "Due to the recent COVID-19 situation, consumer anxiety has increased, leading to greater demand for CU delivery service. Through differentiated marketing tailored to social changes and customers' lifestyles, we aim to enhance daily convenience and contribute to increasing store sales."
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