Korean convenience stores to cut or freeze prices of some PB items

Cup noodles for the “2+1” deal are on display at a CU convenience store. [Photo by Yonhap]

Major convenience store chains in South Korea have made the decision to either reduce or freeze the prices of select private-label brand (PB) products, following the recent announcement to refrain from increasing ice cream prices.

One of the leading convenience store chains, CU, operated by BGF Retail Co., Friday announced plans to decrease the prices of its integrated PB brand, “HEYROO” products, starting July 1. This measure is in line with the government’s efforts to stabilize consumer prices.

As part of the adjustment, the prices of several HEYROO products will be reduced by 100 won ($0.08) each. This includes the whole grain sweet potato snacks, whole grain conch-shaped snacks, and whole grain oranda snacks, which will be priced at 1,400 won instead of the previous 1,500 won. Additionally, the price of HEYROO white milk 1 liter will be lowered to 2,500 won from 2,600 won, while the cost of milkdeoktem 1.8L will be reduced to 4,400 won from 4,500 won.

The price cut, a first for the retail industry, is being made by reducing the company’s own margins without adjusting the supply prices of small and medium-sized suppliers that are facing difficulties due to increased raw material prices, CU explained.

Korea Seven’s corner store chain 7-Eleven also announced a price reduction of 100 won for two types of PB snacks and two types of beverages under its PB brand “7-SELECT” starting next month.

The targeted items include Baked Maparing (1,600 won to 1,500 won), Sindangdong Tteokbokki (1,500 won to 1,400 won), Honey Peach Ade (1,000 won to 900 won), and Sangju Persimmon Punch (1,200 won to 1,100 won).

For nine other PB products, including 7-SELECT Dongwon Tuna Ramyeon, Spicy Seasoned Jerky, and Woori Chestnuts, the company decided not to raise the selling prices despite an increase in the prices by its supply partners.

7-Eleven’s price cuts and freezes on PB products are also decided without adjusting supply prices for its partners.

Emart24 Inc., the convenience store arm of Korean retail giant Emart Inc., has decided to freeze the prices of popular PB bottled water, four types of fete coffee, and one type of milk until the end of the year, and GS25, a leading convenience store chain operated by GS Retail Co., plans to introduce six items, including kitchen towels, from the PB brand “Realprice” operated by supermarket GS The Fresh. These products are about 30 percent to 40 percent cheaper than similar products of the same capacity available in the market.

Furthermore, the four prominent convenience store chains said they will provide significant discounts and enticing offers on food and household products for the upcoming month. These promotions include generous half-off discounts as well as “1+2,” “1+1,” and “2+1” deals.

These companies had initially planned to raise ice cream prices starting from July 1 as Lotte Wellfood Co. raised the wholesale prices but have decided to maintain the prices for the time being.