[Click e Stocks] GS Retail, Together with Butter Beer

[Asia Economy Reporter Hwang Junho] Korea Investment & Securities expects GS Retail's store growth rate to decrease to 1.0~1.3% compared to competitors, due to efforts to strengthen competitiveness such as normalization of foot traffic and the launch of Butterbeer.

GS Retail's operating profit for the third quarter of this year was recorded at 87.6 billion KRW, exceeding market expectations by 15%. This figure represents a 16.0% decrease compared to the previous year. The surprise performance in the hotel sector due to reopening and structural improvements, as well as the reduction of losses in Fresh Mall, contributed to this result. However, the convenience store margin rate was below expectations.

Myungjoo Kim, a researcher at Korea Investment & Securities, stated, "The difference in existing store growth compared to competitors narrowed from 2.6 percentage points in the second quarter to 1.2 percentage points, which can be viewed positively," adding, "Due to the recovery of GS Retail's convenience store division competitiveness following reopening and the operating profit leverage effect from the reduction of losses in the online business, GS Retail's stock price trend is expected to be favorable next year."

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