Uptick in convenience stores as single households increase in Korea
Are convenience stores becoming central to Koreans’ lives?
As more and more Koreans live in single households, convenience stores have become an important part of life. And why not? Convenience stores have everything that a person in particular a single person needs — from toiletries and other small daily necessities to cold and hot foods in individual portions.
Convenience stores even inspired a new popular entertainment program on tvN. “Rob the Convenience Store” features top entertainers, such as Yoon Doo-jun of K-pop band Highlight and comedian Lee Soo-geun. For its first episode, the program featured guitarist Kim Do-gyun, who has reportedly spent 100 million won at convenience stores. While appearing in various entertainment programs, Kim disclosed that he was an avid consumer of convenience store goods, spending a total of about 100 million won so far at convenience stores, where he buys everything he needs for his single life. His habit has also earned him a role in a convenience store commercial.
Convenience stores in Korea are becoming a one-stop shop for single shoppers and even diners.
In one episode of the KBS weekend drama “My Father is Strange,” a female protagonist mixes beer and soju in her tumbler at a convenience store after a hard day’s work. Korean convenience stores are looking more like Japanese convenience stores, offering just about everything a person would need for their head down to their toes, attracting consumers looking for accessibility and reasonable prices. Some stores even offer delivery pickup and banking services.
Seol Gyeong, a 26-year old worker in Seoul, is not much of a shopper or a muncher, so she doesn’t ring up a hefty bill at convenience stores. However, she said it’s a different story with her boyfriend, also 26, who is an avid convenience store customer. He spends about 600,000 won a month at convenience stores, where he buys everything from shaving foam to food and other daily necessities. That is notable as Statistics Korea on March 22 said households headed by 39 or younger in the nation spend about 323,000 won on average on food and non-alcoholic drinks.
While she does not go to convenience stores that often, her spending at convenience stores account for most of her spending on daily necessities. “I feel funny if I don’t stop by a convenience store once a day, just like when you had to stop by a stationery store once a day when you were a kid,” she said.
Lee Aram, 21, an African studies junior at Hankuk University of Foreign Studies, said she visits convenience stores twice a day. She lives in a dorm, and because all buildings on her campus have convenience stores, she usually frequents them.
“Usually, I go to buy cup noodles or gimbap for a late lunch, or for coffee and dessert,” Lee said. If she is in dire need of necessities but doesn’t have time to go to a supermarket, she just shops at a convenience store. All in all, she spends an estimated 30 to 40 percent of her monthly allowance at convenience stores. She spreads her business around, going to stores that offer new products, according to news she gets from social media.
“I don’t really worry about the health consequences (of buying too many products at convenience stores). I think overall, the products at convenience stores have improved, and people are aware of that,” Lee said.
Yang Ji-won, a senior at Sookmyung Women’s University, also frequents convenience stores. “The supermarket is too far away; I have to take a bus,” she said. Originally from Cheongju, North Chungcheong Province, Yang said for her, it’s all about accessibility and affordability. Yang estimated she spends around 100,000 won to 140,000 won at convenience stores a month.
“Convenience stores offer a range of special deals, like those two-plus-one deals, so the items are not as pricey as before,” Yang said. Also, living alone, she likes to take advantage of special meal packs, such as lunch boxes and a la carte meals like spicy pork barbecue.
Many singles are frequenting convenience stores, which offer smaller product packages and consequently remove the temptation of buying larger product packages and overspending at supermarkets. Thus, the nation’s leading convenience stores are experiencing remarkable growth.
Last year, GS25, operated by GS Retail, posted a record 5.6027 trillion won in sales. It also recorded an operating profit of 213.2 billion won, surpassing that of the nation’s convenience store leader CU, according to news reports.
But CU, operated by BGF Retail, also saw its sales increase by 16.1 percent and its operating profit by 12.7 percent over 2015. 7-Eleven, operated here by Lotte Group, also posted increased sales and operating profit.
Driving these sales is undeniably the rising number of single households, which is estimated at around 5.2 million, or 26 percent of the 19 million households in the nation. The figure is expected to continue to grow for many reasons, as more Koreans live away from their parents or put off marriage.
To further improve their accessibility to customers, convenience store operators are expected to increase the number of the stores. Industry insiders report that 1,100 CU stores and 1,000 GS25 stores will open this year alone.
I feel funny if I don’t stop by a convenience store once a day, just like when you had to stop by a stationery store once a day when you were a kid.