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Convenience stores, optical shops emerge as biggest beneficiaries of cash handout
A notice stating that government-issued voucher-based cash handouts can be used is posted at a CU convenience store in Seoul, July 13. Yonhap
By Jun Ji-hye
Convenience stores and optical shops have seen a notable boost in sales since the government began distributing voucher-based cash handouts on July 21, according to industry officials on Tuesday.
GS Retail, which operates the major convenience store franchise GS25, reported that average spending per customer rose by over 10 percent from July 22 to Aug. 3 compared to the same days in the previous month — June 24 to July 6 — and was also up around 10 percent year-on-year.
BGF Retail, the operator of CU convenience stores, also recorded an approximately 10 percent year-on-year increase in daily sales during the July 21 to Aug. 3 period.
BGF Retail analyzed that sales growth was particularly strong at stores located in densely populated residential areas, with increased sales of food items, indicating that these stores have captured grocery demand that would normally go to large supermarkets.
The consumption voucher program has also contributed to boosting sales for small businesses.
Data from Korea Credit Data, which analyzed credit card transactions from 382,207 small business establishments nationwide, showed that their average card sales increased by 2.2 percent during the week of July 21 to 27 compared to the previous week.
Among specific sectors, optical shops recorded the highest weekly growth, with sales jumping 56.8 percent, followed by fashion and apparel at 28.4 percent, noodle restaurants at 25.5 percent, foreign language academies at 24.2 percent and pizza shops at 23.7 percent.
The Lee Jae Myung administration rolled out the cash handouts as part of a broader initiative to stimulate domestic spending and revive the slowing economy.
The program provides a one-time payment of 150,000 won ($108) to all Korean citizens and qualifying foreign residents who were living in the country as of June 18, with additional aid distributed selectively according to income levels.
Interior and Safety Minister Yun Ho-jung told the National Assembly that the vouchers had been distributed to 47.36 million people, accounting for 93.6 percent of the population, as of Tuesday.