Integrated GS Retail Expands Digital and Broadcast Commerce... Towards Becoming the 'Distribution Number 3'

Stepping Up as a Comprehensive Distributor Covering Online, Offline, and Broadcast
Targeting 25 Trillion KRW in Transaction Volume by 2025

[Asia Economy Reporter Jo In-kyung] GS Retail is rapidly emerging as the third-largest distribution company in South Korea, encompassing digital and broadcast commerce such as online malls and home shopping, based on over 15,000 convenience stores and supermarkets nationwide.

Integrated GS Retail Ranks Third in Distribution Industry

On the 30th, GS Retail announced that with the launch of the integrated corporation, it plans to invest a total of 1 trillion KRW by 2025 in building digital commerce infrastructure and new businesses, aiming for an annual transaction volume of 25 trillion KRW.

GS Retail will absorb and merge GS Home Shopping as of the 1st of next month. The integrated corporation will become a comprehensive distribution company with ▲over 15,000 offline neighborhood retail stores ▲about 10 digital commerce platforms ▲the top-ranked TV home shopping ▲and a nationwide logistics center network of about 60 centers covering 400,000㎡.

The scale of integrated GS Retail is about 10 trillion KRW in annual sales, ranking third among major listed distribution companies in South Korea, and its operating profit reaches about 400 billion KRW, ranking first. As of the market close on the 29th, the combined market capitalization of GS Retail and GS Home Shopping is approximately 3.9 trillion KRW, ranking second after E-mart (4.5 trillion KRW).

GS Retail’s differentiated core competency is its infrastructure of over 15,000 retail stores. GS Retail’s strategy is to use this as the foundation for a 'quick commerce platform' and 'urban micro-fulfillment' (the detailed process from order to final delivery), which are becoming increasingly important in the rapidly changing distribution environment.

Expanding the Proportion of Digital and Broadcast Sales

GS Retail is also planning to link its strengths in sourcing fresh, processed, and prepared foods with about 10 digital commerce platforms in various fields, including GS Shop, GS Fresh Mall, Lalavla online mall, Dalli Salda (organic specialty store), and 10x10 (design select shop).

Through this, the company aims to increase the share of digital and broadcast commerce, which currently accounts for about 29% (4.5 trillion KRW) of total transaction volume, to around 43% (10.7 trillion KRW) by 2025. During the same period, offline sales from convenience stores and supermarkets, currently at about 10 trillion KRW, are planned to grow to 13 trillion KRW.

Hyunsoo Heo, CEO of GS Retail, emphasized, "There is no other distribution company besides GS Retail that can create synergy by combining over 15,000 offline platforms nationwide with digital and home shopping commerce. Based on the company’s core competencies, we will provide differentiated customer value through the integration of online and offline commerce in a distribution market environment where boundaries are disappearing."

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