GS Retail to Invest 1 Trillion Won Over 5 Years Post-Merger... "Targeting 25 Trillion Won in Transaction Volume"

GS Retail announced on the 28th a blueprint to invest 1 trillion won over five years following its merger with GS Shop, aiming to achieve a transaction volume of 25 trillion won by 2025.

[Asia Economy Reporter Lim Chun-han] GS Retail announced on the 28th a blueprint to invest 1 trillion KRW over five years following its merger with GS Shop, aiming to achieve a transaction volume of 25 trillion KRW by 2025. The business-specific targets are 11.4 trillion KRW for convenience stores, 4.9 trillion KRW for home shopping, 1.6 trillion KRW for supermarkets, 5.8 trillion KRW for digital commerce, and 1.3 trillion KRW for others.

On the same day, GS Retail held an IR conference at the Diamond Room of the COEX Intercontinental Hotel to explain its investment plans, specific target levels, and achievement strategies to major analysts (investment analysts).

GS Retail revealed plans to invest 1 trillion KRW over the next five years with the goal of becoming an "integrated online-offline commerce platform leading customers' lifestyles." The major investment areas include approximately 270 billion KRW to strengthen digital commerce, 570 billion KRW for IT and logistics infrastructure construction, and 180 billion KRW for new businesses, totaling about 1 trillion KRW.

The strengthening of digital commerce will be realized through the establishment of single sign-on (allowing multiple services with one login), simple payment systems such as GS Pay, and expanded investment in food-related new businesses to provide customers with differentiated shopping experiences. Approximately 270 billion KRW will be invested for this purpose.

An investment of 570 billion KRW is also planned for the construction of six new logistics centers and IT infrastructure. GS Retail will transform into a mega logistics company with a nationwide network of 60 logistics centers covering over 400,000 square meters of total floor area, more than 3,300 delivery vehicles, and over 2,200 personnel. Additionally, by building six more logistics centers, GS Retail plans to establish the "closest logistics network" capable of delivering to 99% of consumers nationwide within two hours. Furthermore, it will build a differentiated integrated logistics infrastructure by utilizing various last-mile logistics methods such as 15,000+ retail stores, Our Neighborhood Delivery, Vroong-linked delivery, dawn delivery, Box25, half-price courier service, and supermarket delivery.

IT infrastructure construction to strengthen data analysis will also be carried out. GS Retail analyzes approximately 2 billion purchase data points generated annually across all its retail platforms to provide customized benefits using ultra-precise personalized recommendation algorithms and utilizes data for decision-making across overall management. It will also invest 180 billion KRW to develop and launch new concept stores that integrate new business areas and various retail formats.

Oh Jin-seok, Vice President and Head of Strategy Division at GS Retail, said, "Integrated GS Retail will make an investment of up to 1 trillion KRW over five years to achieve a transaction volume of 25 trillion KRW by 2025. Through this, we will build a mega logistics infrastructure, precise analysis systems, and an online-offline commerce platform to provide differentiated customer value and emerge as Korea's leading distribution innovation company."

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