On the 20th, at a CU convenience store in Jung-gu, Seoul, laborers were busy setting up new equipment in the store. Inside, product display shelves were already set up at a height taller than an adult man, and staff were filling the shelves with products from the edges in every aisle.
Outside, various products were piled up in purple plastic boxes and paper boxes. In front, new large glass windows were installed, allowing easy visibility of the interior from outside. After the renovation, the number of items available at this store has increased by about 14% compared to before.
The domestic convenience store industry, which has reached a saturated market, is in the midst of store renovations. The plan is to reduce targets for new openings while improving efficiency in existing stores to enhance sales and revenue.
According to industry sources on the 22nd, convenience store companies are changing various fixtures, display shelves, counters, and休息空間 to the latest equipment as part of the renovation process. If needed, they also proceed with internal remodeling, exterior painting, and sign replacement. Since most of the expenses are covered by headquarters, the burden on franchise owners is minimal.
CU has increased its investment budget related to store renovations and the number of stores eligible for support by more than 50% compared to last year. Until last year, only franchises that required focused management due to facility aging, operational inexperience, or changes in the commercial area were included in the renovation targets, but from this year, the scope of support has been expanded to include high-performing stores and those undergoing ownership changes.
CU's renovated stores have been steadily increasing from about 200 stores in 2016 to more than 700 in 2023, with an expected 800 by 2024. So far this year, more than 600 stores have undergone renovations by last month, with a goal of approximately 1,200 stores by the end of the year. A CU official said, 'The sales of the over 800 stores that participated in the renovations last year rose by 20.1% compared to the previous year, indicating significant effects,' adding, 'With the expansion of this year's project, we expect it to serve as a lever for increased sales.'
GS25 has also set 'profit-centered sustainable growth' as a key strategy this year, focusing on strengthening individual store profitability over overall growth. New openings are centered around converting proven existing retail stores, and there are plans to activate renovations in the 'Scrap and Build' format.
Alongside this, GS25 is also undergoing renovations that give stores new concepts, taking market conditions into account. While previously focused on specialized stores for alcohol and fresh foods, it has recently begun expanding stores with a sports specialization concept in various regions. GS25 currently operates five sports-specialized stores, including FC Seoul, LG Twins, Hanwha Eagles, and Ulsan HD, and plans to increase this number.
Seven Eleven launched a new concept franchise model called 'New Wave' in October last year. The store features customized products in categories beyond food, including fashion and beauty, and applies modern spatial design.
According to Seven Eleven, the first New Wave store created in Gangdong-gu, Seoul recorded sales growth of about four times compared to regular stores. Sales of food, including alcoholic beverages, increased up to 12 times compared to regular stores, while fresh and beauty products showed increases of 16 times and 9 times, respectively. Seven Eleven opened its first New Wave franchise in Dunsan-dong, Daejeon, in March this year, and plans to gradually expand this concept.
The activation of renovation projects by companies can be attributed to the saturation of the domestic convenience store market. According to the Korea Convenience Store Industry Association, by the end of last year, the number of stores from the four major convenience store companies (CU, GS25, Seven Eleven, Emart24) was 54,852, a decrease of 28 stores from the previous year. This decline in store numbers is the first since the convenience store industry was introduced in 1988, 36 years ago. The density of convenience stores relative to the population in South Korea is over twice that of Japan, which is known as a 'convenience store powerhouse.'
A convenience store industry official noted, 'Renovating existing stores can increase the number of products offered by optimizing space and introducing new fixtures,' adding, 'This can also extend customer dwell time and increase purchase probabilities.' He added, 'In a situation where various distribution channels are competing, store renovations provide a way to fully leverage the advantage of convenience stores in being easily accessible while also boosting sales.'
편의점 업계 관계자는 “기존 점포를 재단장하면 공간을 효율화하고 새로운 집기류를 투입해 입점 품목 수를 늘릴 수 있다”며 “이에 따라 고객의 체류 시간도 늘어나고, 구매 확률도 높아지는 효과가 있다“고 말했다. 이어 “온라인을 비롯해 여러 유통 채널이 경쟁하는 상황에서, 점포 재단장은 고객이 쉽게 접근할 수 있다는 편의점의 강점을 최대한 살리면서도 매출을 높일 수 있는 방법”이라고 덧붙였다.