S. Korea's convenience stores bet on private brands to fight stagnation

A model examines products from CU’s new private brand, PBICK. / Courtesy of CU

SEOUL, July 07 (AJP) - By the end of 2024, South Korea had 54,852 convenience stores nationwide. That breaks down to roughly one store for every 1,000 people. In urban areas, it is not unusual to see three or four different franchises on the same block, a clear sign of how dense and competitive the market has become.

With growth slowing, the country's biggest chains, CU, GS25, 7-Eleven Korea, and Emart24, are turning to private brands (PBs) to stay relevant and improve margins. What began as budget-friendly alternatives have since evolved into full-scale product lines that help define each retailer's identity.

Each chain now promotes its own brand. CU recently replaced its former label, Heyroo, with a new flagship line called PBICK. GS25 operates YouUs and Real Price. 7-Eleven Korea sells under the Seven Select label. Emart24 features No Brand and Peacock, both tied to its parent retail group.

CU, run by BGF Retail, said on Jul. 6 that PBICK sales rose 33.7 percent in its first month. The line launched in May with snacks like melon gummies, chocolate churros, and affogato cookies. So far, CU has released more than ten products under the PBICK brand.

The impact is already visible in performance metrics. Over the past month, PB snacks accounted for 16 percent of CU's total snack sales, up from 12 percent. PB snack sales at CU grew 36.6 percent in 2022, 27 percent in 2023, and 15.5 percent in 2024.

CU sees PBICK not only as a branding move but as a way to boost store-level revenue. Upcoming items include black sesame latte snacks, double shrimp chips, and crème brûlée-inspired crackers.

"Convenience store PBs are uniquely positioned to respond to rapid market shifts," said Shin Eun-ji, CU snack foods MD. "We aim to create differentiated offerings that deliver new value and experience."

A customer browses a GS25-branded display inside a Don Quijote store in Japan Courtesy of GS Retail — A customer browses a GS25-branded display inside a Don Quijote store in Japan. / Courtesy of GS Retail

GS25 is also expanding its private brand strategy through cross-border collaboration. On Jul. 8, it will open a month-long pop-up shop at The Hyundai Seoul with Japan’s leading discount store, Don Quijote. This will mark Don Quijote’s first physical presence in South Korea.

The pop-up will showcase over 30 of Don Quijote’s private label items alongside 10 from GS25’s lineup, including snacks and lifestyle goods. Some of the featured products will later be released nationwide at GS25 locations.

This partnership follows GS25’s move in May to supply YouUs-branded products to Don Quijote stores in Japan. The Seoul pop-up reflects a growing collaboration between the two companies.

Other players are pushing similar strategies. Emart24 is preparing to introduce its No Brand products to overseas stores, starting in India this August. 7-Eleven Korea has expanded its Seven Select label into lifestyle items, offering Supima T-shirts and socks in a trial to test customer response.

Lim Jaeho ajupresswogh@ajupress.com

S. Korea's convenience stores bet on private brands to fight stagnation

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