On the morning of the 15th at around 10:30 a.m., at a CU convenience store in Yeongdeungpo-gu, Seoul. Next to a kiosk located deep inside the store, countless parcels were stacked, waiting for collection after registration. I tried operating the kiosk myself to arrange for shipping. After selecting the desired shipping method, recipient information, and contents, I weighed the box I brought and was able to easily print the shipping label.
The registered parcels were brought to the Seoul 1 Camp HUB, where logistics are concentrated, around midnight after collection. The next morning, they were transferred to a Transfer Center (TC) near the destination. Ultimately, around 6:40 p.m., they were delivered without damage to the front door of a dwelling located near Jung-gu, Sindang-dong.
The convenience store industry is actively expanding its parcel delivery business as a future growth driver. Although the number of domestic stores is already saturated, the widespread store infrastructure across the country allows for competitive delivery capabilities. Convenience store parcel delivery is becoming more competitive not only due to lower prices compared to existing services but also improvements in delivery speed recently.
◇ GS25 launched 'in-house logistics delivery'… CU and Seven Eleven join in
According to the industry on the 22nd, GS25 was the first convenience store in the country to start a parcel delivery service utilizing its own logistics network. The company began the 'halved delivery' service in 2019, allowing customers to register parcel shipments at nearby GS25 stores, with recipients picking them up at GS25 locations near their homes. The fee is half that of standard parcel delivery.
In its first year, the usage of the halved delivery service was only 90,000 cases, but it has recently surpassed a cumulative total of 43 million cases. Compared to the previous year, the usage increased by 75.7% in 2022, 15.3% in 2023, and 12.1% in 2024.
CU also entered the parcel delivery market by launching 'thrifty delivery' in 2020. CU's thrifty delivery usage has also increased, with year-over-year growth of 89.7% in 2022, 90.3% in 2023, and 30.5% in 2024.
Last October, CU began a 'home delivery' service where parcel delivery drivers directly visit the sending location to pick up and deliver items to the destination. Recently, they also launched the 'CU next-day guarantee delivery' service, which delivers parcels sent within a day to their destination. This is the first instance of next-day delivery being implemented in the convenience store industry.
Seven Eleven also entered the fray as a latecomer by launching the 'kind delivery' service in February, which operates 365 days a year without breaks. This service allows parcels to be exchanged between Seven Eleven convenience stores, applying the industry's lowest fare of 1,980 won across inland areas, excluding Jeju Island.
◇ It's a waste to just sell goods… Convenience stores have become nationwide logistics hubs
The reason convenience store operators are rushing into the parcel delivery market is to generate new revenue sources. According to the Ministry of Trade, Industry and Energy's report on sales trends of retail companies in February, convenience store sales declined by 4.6% compared to the same month last year. This marks the first time in about five years since the COVID-19 pandemic that the figures have shown a decline.
The domestic convenience store market is already saturated. The total number of stores operated by the four major convenience store chains (CU, GS25, Seven Eleven, Emart24) was 54,852 last year, a decrease of 28 from 54,880 in 2023. This is the first decline in the overall number of convenience stores in 36 years.
Convenience store parcel delivery has a draw-in effect. A company representative noted that “customers often visit the convenience store to register or pick up parcels, and they frequently purchase other products in the store as well.”
Additionally, convenience stores are located in every neighborhood, allowing them to serve as logistics hubs for last mile delivery. Parcel users can easily access services from nearby stores without time constraints.
The spread of used trading and resale culture also contributes to the increasing use of convenience store parcel delivery. Unless used items are exchanged in person, parcel delivery has become the norm for such transactions, and convenience store parcel delivery offers advantages in terms of price and accessibility.
Earlier this month, Carrot Market launched a remittance and payment service called 'Carrot Pay,' in collaboration with CU and GS25, allowing users to reserve convenience store parcel delivery directly within its app. This feature allows users to book parcel delivery directly within the Carrot app without needing to switch to an external app or go through the on-site kiosk reservation process.
◇ Limitations on parcel size, weight, and items are drawbacks
While convenience store parcel delivery is convenient, it also has limitations. Most companies limit the weight to 5 kg or less, and the dimensions of the boxes are restricted to a combined length of 80 to 100 cm. Valuable documents or small boxes, which are at risk of loss, are also restricted.
The difficulty in trading high-value items is also a disadvantage. Most companies set a maximum value limit of 500,000 won, and additional charges may apply for items exceeding a certain amount.
The types of items handled are also limited. Liquids, glass, food, and other items are excluded from registration, with limitations largely to clothing, books, miscellaneous goods, packaged foods, and grains.
A representative from a convenience store company stated, “Convenience store parcel delivery using its logistics networks has limitations on size and weight due to store space and operational constraints, but it definitely holds a clear comparative advantage in terms of convenience. Recently, there have also been increasing cases of collaborating with established parcel delivery companies to expand service areas.”