GS Retail sees 159% boost in quick commerce sales

[Courtesy of GS Retail]

GS Retail Co. reported a 159 percent increase in sales for its convenience store chain, GS25, and supermarket chain, GS The Fresh, compared to 2022, according to the company’s announcement on Wednesday.

GS Retail recorded a 159.9 percent growth in quick commerce sales for the year as of October 2023, compared to the same period last year, with a 201 percent growth rate in sales for stores outside the Seoul metropolitan area.

Among the overall quick commerce performance, the pickup service accounted for 70 percent. The pickup service allows customers to pre-purchase products via its dedicated application, focusing on services in the users’ neighborhood, and pick up the packaged items at a designated time. Customers can reserve popular items, often prone to sellouts at convenience stores, via the app and pick up various alcoholic beverages after ordering.

Notable examples include a significant increase of up to 700 percent in service usage when new products, such as the giant cup instant noodle series and branded lunchboxes, were released. The average purchase amount for pickup service customers is approximately 2.8 times higher than regular customers, at 14,000 won ($10.73).

Among the GS The Fresh services, delivery accounted for over 88 percent, and the average order amount is approximately 3.2 times higher than that of convenience stores. Fresh produce, ready-made meals, dairy products, and other grocery items are the main products in supermarket deliveries.

GS Retail offers quick commerce services, including convenience store pickups and supermarket deliveries, through its “online for offline” (O4O) infrastructure. This system connects over 18,000 convenience stores and supermarkets nationwide through its proprietary app, as well as other platforms provided by Naver Corp. and the local food delivery application Yogiyo.

GS Retail plans to develop its quick commerce service business further and continue with online-to-offline (O4O) expansion alongside the development of exclusive commerce services.