"Convenience Stores Join Competitive Price Cuts Following Ice Cream with Private Brand (Comprehensive)"

Ice Cream Price Hike on Hold
PB Product Price Cuts 'We Go First'
Headquarters Sacrifices Some Margin "Joining Price Stability"

Convenience stores are competitively joining the wave of price reductions initiated by manufacturers of ramen, snacks, and bread. Following the freeze on ice cream prices that were scheduled to increase from July 1, they are also rapidly announcing price cuts on their private brand (PB) products.

According to the industry on the 30th, CU will reduce the prices of three Heyroo snack items and two milk products, all PB items, by 100 won each starting next month on the 1st. These products are popular, selling over 200,000 units monthly on average. The Heyroo whole wheat sweet potato type, king conch type, and Oranda snacks will drop from 1,500 won to 1,400 won. Heyroo white milk (1ℓ) will change from 2,600 won to 2,500 won, and Milk Deuktem (1.8ℓ) will go from 4,500 won to 4,400 won. This price reduction is carried out by CU reducing its own margin without adjusting the supply price from suppliers, aiming to ease the burden on small and medium-sized partner companies that find it difficult to adjust prices due to rising raw material costs.

A model is introducing the U-yu Deuktem product at CU.
[Photo by BGF Retail]

Seven Eleven will also lower prices by 100 won each for two PB Seven Select snack items and two beverage items starting from the 1st of next month. The affected products are Seven Select Roasted Maparing, Seven Select Sindang-dong Tteokbokki, Seven Select Honey Peach Ade, and Seven Select Sangju Dried Persimmon Sujeonggwa. Additionally, prices for nine PB items including Seven Select Dongwon Tuna Ramen, Seven Select Spicy Seasoned Beef Jerky, and Seven Select Our Taste Chestnuts will be frozen. The company explained that while raw material costs will increase by 5-10%, selling prices will not be raised to alleviate operational burdens on small and medium-sized partners.

GS25 is expanding the handling of GS The Fresh’s PB brand Real Price products. Real Price is an ultra-low-price brand that discovers small and medium-sized companies with excellent products but difficulties in market entry, selling their products at about 70-80% of regular product prices. Currently, six items are offered, including Real Kitchen Towel (4 rolls), Real Disposable Gloves (100 pieces), Real Sanitary Bags (200 pieces), Real Roll Bags (200 pieces), Real Natural Pulp (24 rolls), and Real Facial Tissues (3 packs). GS25 plans to diversify the product range to expand customers’ price options. Emart24 has decided to freeze prices on one PB bottled water, four PET coffee products, and one milk product until the end of the year. These include I’m e Haru One Liter Water (500ml), I’m e 500ml PET Coffee, and I’m e Haru e One Cup Milk (1ℓ).

Earlier, GS25, CU, Seven Eleven, and Emart24 postponed the price increase of Lotte Wellfood ice cream. This also involves the headquarters sacrificing part of their margin and bearing the burden of supply price increases. Currently, CU sells 10 types, GS25 sells 15 types, Seven Eleven sells 13 types, and Emart24 sells 15 types of Lotte Wellfood ice cream products.

A convenience store industry official said, "Amid recent price increases, we decided proactively to reduce PB product prices to minimize customer burden," adding, "We will continue to pursue win-win management that benefits society by considering the positions of customers, partners, and franchise stores."

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