Growing Convenience Store Parcel Market... "High Usage Rate in Songpa and Gangnam Districts"

Affordable Prices Make It 'Popular' Among Young People
Usage Increases in Areas with High Concentration of Single-Person Households

[Asia Economy Reporter Lim Chun-han] As courier companies continue to raise delivery fees one after another, the market for convenience store-to-convenience store delivery services is expanding. This service is gaining popularity among the 20s and 30s generation due to its affordable delivery prices.

According to CU on the 25th, from the 1st of last month to the 21st of this month, the average monthly usage of the 'CU Kkiri Delivery' service increased more than tenfold compared to 2020. The proportion of CU Kkiri Delivery in CU's total deliveries rose from 1.8% in 2020 to 12.9% in 2022. During the same period, GS25's 'Half-Price Delivery' monthly average usage increased more than sevenfold, and its share in GS25's total deliveries surged from 7.3% in 2020 to 33.8% in 2022.

Users of convenience store-to-convenience store delivery services were mainly concentrated in the Seoul and Gyeonggi metropolitan areas. According to last year's regional usage status of 'CU Kkiri Delivery,' Seoul accounted for 31.6%, Gyeonggi 26.5%, Busan 9%, Incheon 5.8%, and Daegu 4.9%. In particular, within Seoul, Songpa-gu (8.3%) and Gangnam-gu (8.1%) had higher usage rates compared to other areas. These regions share the common characteristic of having a large population of people in their 20s and 30s and many single-person households. According to the Seoul Open Data Plaza, the districts with the highest population of people in their 20s and 30s based on resident registration are Gwanak-gu, Songpa-gu, Gangseo-gu, and Gangnam-gu, in that order.

The reason young people use convenience store-to-convenience store delivery is the low price. At CU, sending a package under 1 kg costs only 1,600 KRW. At GS25, sending up to 500g costs 1,600 KRW, and 1 kg costs 1,800 KRW. Additionally, during secondhand transactions, there is no need to disclose your address to strangers, and since you can pick up items at a nearby convenience store, the risk of lost packages is reduced.

A BGF Retail official said, "The convenience store-to-convenience store delivery service has rapidly grown in a short period, changing the delivery landscape. We will continue to improve service quality to enhance customer convenience and benefits."

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