Evolution of convenience stores

By Kim Jae-heun

It has not been that long since convenience stores were seen as a crucial part of people's everyday lives here.

In the past, customers would mainly visit them to buy snacks or daily necessities late at night. The stores didn't offer a wide variety of items and those they did were mostly expensive, which later led many people to shop at discount stores instead

However, local convenience stores have evolved in many ways more recently.

Offering private brand (PB) products such as instant noodles and lunch boxes started to give people a reason to return to shop for these.

The CU chain introduced the exclusive HEYROO beverage lineup including GET coffees and ICED drinks.

Companies also collaborated with local mobile carriers to offer discount on most products sold in their convenience stores ― this was a huge plus in attracting younger customers.

Launching a home delivery service also made convenience stores indispensable in people's lives amid the growing popularity of secondhand item trading online.

The country's largest convenience store brand GS25 further launched a “non-stop” delivery service with local IT giant Naver, allowing customers to arrange and pay for the service online. Previously, people had to visit the stores to hand over the parcel and pay the fee on site.

COVID-19 effects

The popularity of convenience stores had been growing fast but the outbreak of COVID-19 boosted this.

The government imposed strict social distancing regulations urging people to stay home and shun places where large crowds gathered.

Convenience stores instantly started delivery service for their own products.

CU began offering online shopping together with Naver for customers within 1.5 kilometers of a store in urban areas to place orders starting in March. The service gained tremendous popularity with its use skyrocketing by 315.9 percent in just nine months.

Customers were particularly satisfied that they did not have to download a mobile application and shop through a search platform.

Riding on the popularity of the service, CU decided to expand it to 5,000 store across the country.

It also joined hands with local food delivery players Yogiyo and WMPO starting from April.

Robot delivery service

GS25 has recently started a delivery service by robot at the LG Science Park building in Gangseo District, southwestern Seoul. A robot named “Dillio” will carry maximum 15 kilograms of items and make deliveries to three destinations at once.

It can go as far as the ninth floor in the building and takes about five minutes. Customers have to place their order through Kakao Talk, the country's most used mobile messenger application, and they have to input a password so only they can open the container in the robot body.

GS Retail, operator of GS25, said it plans to introduce Dillio at two more stores in GS Tower and Parnas Tower, both in Gangnam District, Seoul, starting January 2021.

Food delivery service player Baedal Minjok (Baemin), operated by Woowa Brothers, is test-running its delivery robot too.

The robot is called Dilly Drive and is equipped with indoor and outdoor self-driving technology. It also features airbags that absorb shocks for safety, and LED lights to warn people nearby in the event of a collision. It can carry up to 30 kilograms.

Baemin started operating five Dilly Drive robots at Alleyway Gwanggyo in Suwon, Gyeonggi Province, in September. Alleway Gwanggyo is a residential and commercial complex with 1,100 households. Residents and visitors can place orders with restaurants and coffee shops in the area through a Baemin application.

Drive-thru service for convenience stores

CU will offer a drive-thru service starting Thursday at 500 stores in the capital and metropolitan area.

Customers can place orders on the Owin app and receive their items in their car.

If the service gains popularity, the convenience store brand will expand the system to 3,000 stores nationwide in the first half of next year.