GS Retail branches out for partnership to build up online power

[Photo provided by GS Retail Co.]

South Korea’s retail giant GS Retail Co. which is bulking up through the merger with GS Home Shopping is seeking various partnership to build up its supply channels and network for greater online shopping choices and convenience.

GS Retail said that it signed a memorandum of understanding with Korea’s leading local produce retail chain Nonghyup Hanaro Mart Inc. on Monday to cooperate in developing new products, sharing delivery platform and international outsourcing.

GS Retail plans to make new meal box products made from fresh and locally-grown ingredients that will be sourced by Nonghyup Hanaro Mart and sell them at Nonghyup Hanaro stores in Seoul and its surrounding area.

The latest partnership is in line with the company’s efforts to scale up its business and sales by strengthening cooperation with companies of various sectors. Last week, it signed a business agreement with the nation’s telco KT to optimize its logistics platform by using KT’s artificial intelligence (AI) technology.

KT will provide AI-analyzed data that could have impact on delivery process such as the real time traffic situation, amount of cargo, height and weight of cargo truck and roads requiring u-turn to propose optimal transport route and schedule.

GS Retail’s online platform GS Fresh Mall even partnered with its rival Shinsegae Food to launch home-baked bakery products after benchmarking SSG.com’s business to deliver freshly baked bread.

The company’s GS25 convenience store in Parnas Tower in Samsung-dong became the first convenience store in the country that sells luxury goods.

GS Retail that operates convenience stores, retail shops and hotel said earlier this month that it will merge with GS Home Shopping engaged in TV home shopping and mobile commerce business next year to integrate online and offline operations, a move that will lead to the birth of a mega commerce operator.

The recent series of bold movements are largely aimed at overcoming industry-wide slowdown caused by Covid-19. Market experts estimate GS Retail’s revenue would shrink to 8.95 trillion won ($8.05 billion) this year from 9 trillion won last year.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]