GS25 joins race for 1-hour express grocery delivery service market
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GS Retail Co., the operator of convenience store chain GS25 and delivery app Yogiyo, is the most active in this field.
On Tuesday, the company launched a quick delivery service to allow Yogiyo users to order and get food delivered from 500 GS25 shops nationwide.
GS Retail has so far invested 400 billion won ($313.8 million) in quick commerce projects, which include the acquisition of Yogiyo in 2021. It also operates its own quick delivery platform like Woodel where users can get food delivered from GS25 convenience stores and GS The Fresh. Woodel sales jumped by 44.3 percent in the fourth quarter ended December 2022 compared to the average of the first three quarters. During the same period, the unit price per purchase increased from 15,000 won to 18,000 won.
Homeplus Co., the second largest retailer in Korea behind Shinsegae Group’s E-MART Inc., delivers grocery within an hour directly from 252 Homeplus Express stores operating in 33 cities across the country. With the advantage of receiving fresh food such as vegetables, meat, and dairy products within an hour, the repurchase rate increased by 252 percent one month after a new free shipping policy was established.
E-MART recently opened two micro fulfillment centers in Gangnam to provide immediate delivery services for customers in Gangnam and Seocho districts. With a minimum order of 20,000 won and a delivery fee of 3,000 won, customers can order and get fresh food, groceries, and daily necessities within an hour of placing an order.
The race to win the quick commerce market heats up in Korea as the local market is expected to grow fast to over 5 trillion won in 2025, up 10 times from 500 billion won in 2020, according to market data.
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