Seoul Convenience Stores Quadruple in 15 Years... Average Startup Cost 76 Million Won

The number of 24-hour convenience stores in Seoul has increased about fourfold over the past 15 years. As of last year, the average startup cost for a convenience store was around 76 million KRW, and the average annual sales were 448 million KRW. Convenience store usage was highest on Fridays and during the evening hours after 6 PM.

On the 7th, the Seoul Metropolitan Government announced that it conducted statistical analysis based on various big data collected by the Seoul Metropolitan Business Survey, Franchise Business Disclosure Documents, and the Seoul Big Data Campus, targeting 'chain convenience stores.'

The purpose of this survey is to provide diverse and objective information, detailed figures such as startup costs and sales analysis, to offer practical assistance to prospective entrepreneurs preparing to open convenience stores.

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According to the analysis of the Seoul Metropolitan Business Survey data, as of the end of 2021, there were a total of 8,493 convenience stores in Seoul, about four times the 2,139 stores in 2006. The density, indicating the number of convenience stores per 1㎢, also increased from 3.5 in 2006 to 14 in 2021.

The majority of convenience store owners (self-employed) are male, slightly outnumbering females, but the proportion of female owners has been steadily increasing. The most common age group for convenience store owners is in their 50s; however, compared to five years ago, the number of owners in their 30s and 40s has decreased, while those aged 60 and above have shown an increasing trend.

As of 2021, there were a total of 34,454 convenience store employees (17,614 men and 16,840 women), averaging 4.06 employees per store. Among them, 10,008 were owners (self-employed) and unpaid family workers, 4,617 were regular employees, 19,710 were temporary or daily workers, and 119 were other workers with employment contracts shorter than one month.

Analysis of franchise business transaction registration data showed that the average annual sales per convenience store in Seoul (survey of 9 major franchise headquarters) was approximately 448.32 million KRW as of 2021.

Next, analysis of credit card payment big data held by the Seoul Big Data Campus revealed that sales (2019?2021) were highest on Fridays and lowest on Sundays. By time of day, the evening hours (6 PM to 10 PM) accounted for the largest share of payments, with the 8 AM and 12 PM hours also showing higher proportions compared to other times. The number of card transactions showed a similar pattern to card sales amounts.

Finally, using and analyzing franchise business transaction information registered with Seoul (2018?2022), the 'average convenience store startup cost' was about 76 million KRW (as of 2022). This represents an increase of approximately 10% over five years compared to 69 million KRW in 2018.

The Seoul Metropolitan Government stated that it plans to continuously release various statistical analysis results that are closely related to citizens' daily lives and can provide practical help to small business owners and self-employed individuals by utilizing nationally approved statistics, big data, and administrative data held by Seoul.

Kim Jin-man, Director of Digital Policy at Seoul City, said, “This survey is expected to provide multifaceted information about the status and consumption patterns of convenience stores located in Seoul, helping citizens preparing to open convenience stores make rational decisions.” He added, “However, when considering opening a convenience store, it is advised to make careful decisions based on documents such as the disclosure documents and franchise contracts registered by the franchise headquarters, as well as documents on the status of nearby franchise stores.”

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