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🇰🇷 South Korea /Economy & Trade

Convenience stores boost fresh food offerings to capture grocery shopping demand

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Convenience store chain CU is expanding its 'Smart Grocery' concept, focusing on fresh produce and groceries to compete with supermarkets.
  • The 'Smart Grocery' stores, like the new one in Shinchon, Seoul, feature a wider selection of fruits, vegetables, meats, and household staples.
  • This move reflects a broader industry trend as convenience stores aim to capture more of the grocery shopping market, with competitors like GS25 and Seven-Eleven also increasing their fresh food offerings.

A convenience store in Seoul's Mapo district is blurring the lines between a quick stop and a full grocery run, signaling a significant shift in the retail landscape.

The CU Shincheong-pier store, a 'Smart Grocery' outlet, greets customers not with typical convenience store fare, but with stacks of fresh fruit like melons, tomatoes, and peaches. The store's layout, complete with dozens of shopping baskets, resembles a neighborhood supermarket or a corporate supermarket (SSM) more than a traditional convenience store.

Inside, the selection extends beyond snacks and drinks to include refrigerated and frozen meats, fish, bulk packs of instant noodles and eggs, and even imported international foods. This expanded offering aims to cater to shoppers seeking a more comprehensive grocery experience closer to home. One customer noted the surprising availability of international ingredients, typically found in larger supermarkets.

It's interesting that a convenience store has products not easily found in regular supermarkets.

— Moon A-mu-gaeA 20-something job seeker visiting the CU Smart Grocery store with his mother.

CU's 'Smart Grocery' initiative is a strategic response to growing consumer demand for convenient, local grocery shopping. The company plans to open more such stores, particularly in residential areas and neighborhoods with a high concentration of single-person households. The first 'Smart Grocery' store, opened in Suwon, has seen remarkable success, with its grocery sales ranking in the top 1% nationwide and accounting for about 20% of total sales, a tenfold increase compared to typical CU stores.

This expansion by CU is part of a larger trend in the convenience store industry. Competitors are also bolstering their fresh food offerings to attract grocery shoppers. GS25 aims to increase its 'freshness-enhanced stores' to 1,000 this year, while Seven-Eleven plans to expand its similar stores to over 200. E-mart24 is also strengthening its private brand of fresh foods. The competition is heating up as convenience stores increasingly vie for the grocery shopping market traditionally dominated by large supermarkets.

This is good enough for grocery shopping, depending on personal preference. It's also nice that there are various convenient side dishes.

— Kim A-mu-gaeA 40-something resident visiting the store for the first time.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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