Finding "Closeout Food" and Even "Subscriptions"... Surviving the High Inflation Era with Convenience Stores

Monthly Subscription Payment... Popular Discount Services
Purchase Cheaply Through Closing Discounts

A convenience store in downtown Seoul. In the era of high inflation, more office workers are trying to save expenses by using convenience stores. [Image source=Yonhap News]

[Asia Economy Intern Reporter Kim Gun-chan] As inflation rises, more consumers are visiting convenience stores, leading to an increase in shoppers seeking closing-time discounts. The aim is to purchase products as cheaply as possible through various discount benefits. In addition, so-called convenience store subscription services, where customers pay a fixed monthly fee to receive discounts, are also gaining popularity.

According to Statistics Korea on the 14th, the consumer price index in June rose 6.0% compared to the same month last year. This is the highest increase in 23 years and 7 months since November 1998 (6.8%) during the foreign exchange crisis. The consumer price inflation rate has been rising sharply, recording 4% in March (4.1%) and April (4.8%), and 5% in May (5.4%).

As a result, office workers are also turning to affordable convenience store meals. Mr. Kim, a man in his 40s, said, "Dining out prices have risen so much that I often eat convenience store lunch boxes, which are also nutritious." He added, "Compared to regular restaurants, convenience store lunch boxes are much cheaper."

Another office worker in his late 30s, Mr. Park, said, "The convenience store subscription service is also good," and recommended it for those who frequently use convenience stores. As office workers’ opinions suggest, this service has become popular among convenience store customers recently.

By using this service, customers can select desired products such as lunch boxes, gimbap, and coffee, pay a monthly subscription fee, and receive discounts a set number of times. For example, if you use a lunch box subscription service worth 4,000 won, you can purchase a 4,500 won lunch box at a 20% discounted price of 3,600 won up to 10 times a month. This means buying 10 lunch boxes for the price of 8.

The usage rate of convenience store subscription services is on the rise. According to CU, subscription service usage from January to May this year increased by 49.3% compared to the same period last year. Especially in May, when the consumer price inflation rate exceeded 5%, usage increased by 68.9%. Consumers using two or more subscription services accounted for 27.1%, and those using three or more reached 13.1%.

A CU representative explained, "Subscription coupon services first started 2 to 3 years ago, but recently, due to rising prices, the number of office workers and students resolving meals at convenience stores has increased sharply, leading to a surge in service usage."

The situation is similar in other convenience store chains. According to the industry, GS25’s subscription service subscribers in May increased by 128% compared to the previous month. Emart24’s subscription service usage also rose by 62% compared to the previous month.

Following convenience store subscription services, closing-time discount services that sell products nearing their expiration date at reduced prices are also gaining popularity. According to the convenience store industry, Emart24’s closing-time discount service usage increased by around double each month compared to the previous month: 106% in April, 98% in May, and 122% in June. GS25’s closing-time discount service usage in June also showed a 282.6% increase compared to August last year.

Consumers can purchase needed products at lower prices, and convenience store franchises can increase sales of short shelf-life items like lunch boxes, reducing waste. Therefore, closing-time discount services can benefit both consumers and convenience stores.

Mr. Kim, a university student who often uses closing-time discount services, said, "People who frequently use convenience stores can buy items at discounted prices, and convenience stores can handle products that would otherwise be discarded, so it’s a win-win."

Meanwhile, the number of convenience store customers trying to reduce expenses amid high inflation is expected to increase further. On the previous day (the 13th), the Bank of Korea took a 'big step' by raising the base interest rate by 0.50 percentage points at once for the first time in history. The current base rate of 1.75% per annum was raised by 0.50 percentage points to 2.25%.

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