GS Retail set footprint in US e-commerce
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South Korean retailer GS Retail has announced a KRW33 billion (US$29 million) equity investment in a US online retailer.
The company has purchased stock in Thrive Market, in a move intended to secure a foothold in America’s thriving organic food sector. It is GS Retail’s first overseas investment.
Thrive’s core business is to sell organic products to its subscriber base, posting annual sales growth of 40 per cent since it launched in 2015.
A spokesman for GS Retail indicated that the firm expects Thrive to post solid growth in future, with expected sales of over KRW200 billion (US$178 million) for the current financial year.
GS plans to market Thrive products through its existing GS25- and GS-branded retail chains within a year.
Questions & Answers
Q.What is the primary motivation behind GS Retail's investment in Thrive Market?
What is the primary motivation behind GS Retail's investment in Thrive Market?
GS Retail's main goal for this investment is to establish a presence in the American organic food market. It represents their first venture into overseas investments, aiming to secure a foothold in this sector.
Q.What is Thrive Market's business model and how has it performed financially?
What is Thrive Market's business model and how has it performed financially?
Thrive Market operates by selling organic products to its subscriber base. Since its launch in 2015, the company has consistently achieved an annual sales growth rate of 40 per cent.
Q.How much has GS Retail invested in Thrive Market?
How much has GS Retail invested in Thrive Market?
GS Retail has made an equity investment totalling KRW33 billion, which is equivalent to US$29 million. This investment secures their stock in the US online retailer.
Q.Does GS Retail have plans to integrate Thrive Market products into its existing operations?
Does GS Retail have plans to integrate Thrive Market products into its existing operations?
Yes, GS Retail intends to market Thrive Market products through its established GS25- and GS-branded retail chains. This integration is planned to occur within the next year.
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