On the morning of the 8th at 10:30 a.m., a long waiting line formed early in the morning at the 'Don Quijote Popup Store (temporary store)' located in the basement of The Hyundai Seoul in Yeouido, Seoul. Crowds began to gather from 8 a.m., and within 30 minutes of opening, the number of entrants exceeded 200, reaching a total of 1,200 individuals waiting to enter for the day.
Popular Japanese products like sesame garlic sauce and egg soy sauce quickly sold out as soon as they were displayed. Lee Jun-hee (21), who visited from Goyang City, said, "I was glad to be able to buy the products I had brought from Japan again," and added, "The prices are similar to the local ones, but it was disappointing that there were purchase limits on some products."
GS Retail operates GS25 in collaboration with the Japanese retail giant Don Quijote, running the popup store at The Hyundai Seoul from the 8th until the 1st of next month.
With the concept of 'Localized Don Quijote', the store combines the complex and flashy atmosphere of Japanese local stores with the sentiments of Korea's nightlife. The store showcases and sells over 50 types of Don Quijote's private brand (PB) 'Zonez' products, with 10 employees from the headquarters in Japan present on-site to share operational know-how.
The popup store is characterized by its enhanced experiential content. Customers who spend over 30,000 won will receive food sets and 'Donpeng' merchandise (souvenirs) through a character lottery event.
Many in the industry interpret this collaboration as GS25's 'experiential retail experiment.' It is seen as a strategy to expand categories beyond the previous focus on food and beverages to include beauty, miscellaneous goods, and global products, aiming to increase customer dwell time and purchase conversion rates.
There is also analysis that this attempt targets two challenges simultaneously: strengthening product competitiveness and expanding into overseas markets amid restructuring in the convenience store industry, which has entered a phase of stagnation due to sluggish domestic demand and store saturation.
In fact, the domestic convenience store industry has entered a noticeable adjustment period this year. According to the Korean Statistical Information Service, first-quarter sales decreased by 0.4% compared to the same period last year, with declines of 0.2% each in April and May, marking three consecutive quarters of negative growth. The number of stores, which had been increasing every year, is decreasing, standing at 48,315 as of May, down by more than 400 from the end of last year, with 313 stores closing in just two months.
Accordingly, the industry is shifting its focus toward profitability-centered strategies rather than mere expansion. In addition to expanding the non-food category, they are reconfiguring stores as 'lifestyle spaces' to target the MZ generation (those born between 1980 and the 2000s). CU is reportedly increasing specialized stores featuring beauty and health functional food, while Emart24 is utilizing its private brand, 'No Brand,' to respond.
They are also strengthening their efforts to target overseas markets. The strategy aims to reduce dependence on domestic sales and build a global revenue model based on brand planning and content competitiveness. GS25 has set an export target of $13 million (about 17.8 billion won) for PB products this year, distributing its products in 35 countries, including Japan, Taiwan, and Vietnam.
In Japan, 400 Don Quijote stores have set up dedicated displays to sell their private brand and limited products. Plans are also being considered to introduce Don Quijote products to domestic GS25 stores in the future. A GS Retail official noted, "There are no specific plans yet, but it's one of the possible scenarios for the future."
Alongside this, CU is expanding PB exports to 20 countries, while Emart24 is increasing its PB exports to 8 countries. The industry believes that this strategy could be a solution to break the stagnation of growth in the convenience store industry in the medium to long term.
Heo Chi-hong, the head of GS Retail's MD division, said, "We aim to leap to a global platform starting with a strategic collaboration with Japan's leading discount store, Don Quijote," and added, "We will continue to partner with global retail brands to build export-import networks and solidify our position as a 'global K-convenience store' through differentiated PB product development."