GS The Fresh eyes 500th store amid aggressive expansion

[Courtesy of GS Retail Co.]

GS The Fresh, a super supermarket (SSM) operated by GS Retail, is expanding its presence in the retail industry by aggressively opening new stores while competitors focus on restructuring.

Targeting new towns and young consumers, GS The Fresh is enhancing services for single and two-person households.

GS The Fresh had 488 stores as of the end of June, up from 438 at the end of last year. This translates to roughly one new store every three to four days.

While seven company-owned stores closed, the number of franchise stores surged by 57, bringing the total to 377 franchise stores, or 73 percent of all GS The Fresh locations—a significantly higher proportion than its competitors.

In contrast, the other big 3 SSMs — Lotte Super (356 stores), Homeplus Express (320 stores), and Emart Everyday (252 stores) — either reduced or maintained their store numbers during the same period.

Lotte and Emart are concentrating on integrating their marts and SSMs for management efficiency, while Homeplus Express faces internal strife over a planned spin-off by its major shareholder MBK Partners.

GS The Fresh has strategically chosen new towns with large apartment complexes as its key locations, aiming to attract young consumers such as newlyweds.

This strategy appears effective, as 50.1 percent of customers at 11 of its stores are in their 20s and 30s—about 20 percentage points higher than the average across all stores.

Notably, customers in their 30s constitute 40.9 percent, emerging as a core demographic. In comparison, customers in their 40s make up 34.9 percent of the overall customer base.

GS The Fresh is on track to surpass 500 stores this month. To cater to single and two-person households, the supermarket has shifted from bulk displays to smaller packaging for vegetables, fruits, and other fresh produce.

Additionally, customers can order directly from GS The Fresh locations nationwide or use the Mart menu in the Our Neighborhood GS app to pre-order premium items like beef, seasonal fruits, vegetables, and seafood at competitive prices.

The chain has also seen significant success with its quick commerce services, which promise delivery within one to two hours.

By partnering with popular online platforms such as Baedal Minjok, Yogiyo, Naver, and Our Neighborhood GS, GS The Fresh offers a one-hour grocery delivery service for some 9,000 essential items, including milk and tofu.

This service has become a favored shopping channel for mobile-savvy customers, with quick commerce sales growing 49.2 percent last year.

In the first five days of this month alone, sales via quick commerce surged by 54.1 percent on-year.

Last year, GS The Fresh reported a revenue of 1.44 trillion won ($1.04 billion), up 9.5 percent from the previous year, and an operating profit of 28 billion won, up 1.9 percent.

Analysts predict continued growth this year, with revenue and operating profit expected to rise to 1.59 trillion won and 47 billion won, respectively.