Convenience store in Korea enjoying revenue boost
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South Korean convenience store operators GS25 and CU received a boost from in-house brands in the second quarter.
GS Retail, which operates the GS25 chain, recorded a net profit jump of 11.1 per cent year on year to 45.8 billion won (US$41 million) in the April-June period, on sales up 5.3 per cent to US$2 billion.
GS Retail attributed the growth to development of new products at its convenience stores, with 36.7 per cent of GS25’s sales excluding alcohol and cigarettes coming from its private-label products in July.
South Korean convenience store operators have been developing private-label products to attract more customers.
GS25’s main rival CU posted a net profit of US$60 million from April to June, an increase of 105 per cent from the first quarter of this year, on sales of $1.3 billion.
Questions & Answers
Q.What is the primary reason GS Retail attributes for its revenue growth in the second quarter?
What is the primary reason GS Retail attributes for its revenue growth in the second quarter?
GS Retail attributes its growth to the development of new products within its convenience stores. A significant portion of GS25's sales, excluding alcohol and cigarettes, came from its own private-label products in July.
Q.How much profit did CU make in the second quarter and how does this compare to the previous quarter?
How much profit did CU make in the second quarter and how does this compare to the previous quarter?
CU posted a net profit of US$60 million from April to June. This figure represents a substantial increase of 105 per cent compared to their performance in the first quarter of this year.
Q.What percentage of GS25's non-alcohol and non-cigarette sales came from its own brands?
What percentage of GS25's non-alcohol and non-cigarette sales came from its own brands?
In July, 36.7 per cent of GS25’s sales, specifically excluding alcohol and cigarettes, were generated by its private-label products. This highlights the impact of in-house brands on their revenue.
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