Faced with a five-year unprecedented slump in sales, South Korea's convenience store chains have created diversified consumption scenarios, such as establishing specialty stores and optimizing product structures based on the characteristics of different business districts, to attract more customers and drive sales growth.
In Hongdae, a bustling neighborhood in Seoul and one of South Korea's most convenience store-dense areas, major convenience store chains have slowed down their expansion, focusing instead on creating unique shopping experiences in each store to attract more customers.
For example, a ramen-specialty convenience store in Hongdae sells around 200 varieties of bagged and cup ramen, alongside ingredients such as sausages, bean sprouts, and soft-boiled eggs.
To make it easier for customers to choose and taste what they want, each type of ramen is labeled with its spiciness level and recommended recipe. The store also offers self-service ramen cooking machines and dining tables.
Since its opening, the store has been able to accommodate an average of 350 customers daily, with ramen sales surpassing those of regular convenience stores by tenfold.
"I come here at least three to four times a week. There is a wide variety of ramen here, including many flavors that I like. So, I often come here to eat," said a resident.
"It's such a Korean experience, coming here, getting your ramen and so cute, so you can take pictures," said a foreign tourist.
Nowadays, convenience stores in South Korea are no longer just places to sell goods; they are integrated with other approaches such as fashion, sports, and music, creating diversified consumption scenarios. For example, a convenience store located right next to Dongdaemun, the largest fashion and shopping district in Seoul, has set up a quick photo printer and a photo shooting area.
Moreover, to enhance brand exposure, convenience stores collaborate with various intellectual property owners to launch related IP derivative products such as beverages, bread, and ramen.
"Compared with regular ones, sales at these specialty stores are around 50 percent higher. We will continuously optimize the stores' product structure and enrich the varieties of our services based on the characteristics of different business districts. For instance, in residential areas, we increase the supply of food categories such as fresh vegetables. In commercial areas, we further expand offerings of lifestyle products such as clothing and cosmetics," said Yoo Da-sol, marketing director of a South Korean convenience store chain.
A recent survey report released by the Bank of Korea, South Korea's central bank, shows that since 2021, the prices of essential goods in the country have increased by 19.1 percent.
As residents try to cut down on expenses to cope with inflationary pressures, major chain convenience stores in South Korea have been introducing low-priced products such as biscuits, beverages, and processed foods, with prices ranging from around 0.7 to 2.8 U.S. dollars.
Statistics show that food items priced at 1,000 Korean won (around 0.7 U.S. dollars) or below are highly popular at South Korea's three major convenience store chains, accounting for nearly 30 percent of their total sales revenue.
Furthermore, various products in small packaging sizes are becoming increasingly popular among customers.
South Korea's convenience store chains diversify services to boost sales
