Competition over delivery services in the convenience store sector is heating up, according to Korea Bizwire.
GS25 forms partnerships with food delivery services to drive sales
Convenience store chain operator GS25 launched delivery services at its seven stores in Seoul through partnership with food delivery service Coupang Eats owned by ecommerce operator Coupang Inc. Customers can order from a range of 200 products from the comfort of their home. There are plans to roll out the service nationwide.
GS25 already launched a delivery service in collaboration with another delivery company, Yogiyo, last April. The pilot project that ran at 10 stores showed that the service was particularly popular during meal time, with monthly average orders reached 3,000.
“We are planning to expand the number of stores that offer delivery services through various delivery platforms and partnerships to increase sales and secure customers,” a GS25 official said.
CU and Emart 24 also entered the race
CU, another leading convenience store chain in the country, is also working with Yogiyo to provide delivery services at 3,000 stores across the country. It plans to increase the number of delivery service stores to 5,000 within the first quarter and introduce around-the-clock delivery at some stores in the Gangnam area in Seoul.
Emart24, owned by Sinsegae, started offering delivery services at 35 stores this year.
A result of growing online orders and demands
The convenience store industry in South Korea is expanding and accelerating its delivery service as a result of growing number of customers accustomed to online orders and deliveries.
The service is a growth engine of the convenience sector, which drives incremental sales and meets customer demands.
Retail Analysis Asia