Samgocheoryo 'Convenience Store Sold-Out Item'... "Don't Walk Around, Use Your Hands Instead"
Pickup Service Usage 'Surges'
Receive Popular Products at Desired Stores and Times
GS25, Usage Increased by 399%
On the 3rd, a customer is purchasing products through the pickup service at the convenience store GS25.
View original image[Asia Economy Reporter Lim Chun-han] # Recently, housewife A had a hard time trying to buy the hottest item among kids these days, the ‘Pop It Jinju Candy,’ at offline stores. She visited convenience stores near her home 10 times but came up empty each time. Then she found out that mobile application (app) pre-ordering was available and was able to easily purchase the desired product. She said, "It was great to be able to buy the ‘sold-out item’ that was hard to find in stores all at once," adding, "I think I will use the pickup service often in the future."
Pickup services are making a comeback at convenience stores. Most were introduced before COVID-19 but did not receive much attention until recently, when the number of users has sharply increased. Among consumers, the biggest advantage is being able to pick up popular products at the desired store and time.
According to major convenience stores on the 3rd, the number of pickup service uses is significantly increasing. At GS25, fresh food pre-order sales grew by 159.3% year-on-year from January to October this year, and the number of Pickup25 uses through the delivery app Yogiyo increased by 399.8% compared to the initial introduction last month (May). At CU, the number of uses last month quadrupled compared to the same period last year, and at 7-Eleven, it increased by 36.9%.
Emart24 introduced a beta version of the pre-order purchase service last month and plans to expand the range of products handled in the future. The reason convenience stores have regained interest in pickup services is not only to expand sales channels but also to expect additional sales from customer visits. Consumers can also save time spent shopping and costs such as delivery fees and courier charges through pickup services.
An industry official from the convenience store sector said, "The response from franchise owners and customers to the pre-order purchase service is positive," adding, "When orders are placed through the app, they are automatically ordered and stocked at the store, so store owners can reduce the burden of inventory, and customers can pick up the desired products at the desired time without making a wasted trip to the store."
As pickup services gain popularity, the number of available products is also expanding. In the early days, it was mainly convenience foods such as lunch boxes, but recently it has diversified to include daily necessities, wine, and seasonal limited products. At GS25, the number of products handled increased from about 500 in May to 1,600 currently, and at CU, it rose from about 100 last year to about 200 this year. 7-Eleven operates about 200 products, and Emart24 offers 25 products.
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The product with the most pre-orders is alcoholic beverages. Due to the rise of the home drinking trend during COVID-19, more people have used pickup services for craft beer, whiskey, and other liquors. Additionally, at GS25, instant chicken and side dishes sold well through pre-orders, while at CU, convenience foods, fruits, and rice were popular pre-order items.
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