CU and GS25 post record Q1 sales on store innovation
South Korea’s top convenience chains boost growth with specialized formats and fresh product strategies.
South Korea’s leading convenience retailers, CU and GS25, reported their highest-ever first-quarter sales for January–March 2026, driven by store innovation and product strategy. BGF Retail, operator of CU, posted sales of 2.1204 trillion won (approximately $1.63 billion), up 5.2% year-on-year, while GS Retail recorded 2.8549 trillion won ($2.20 billion) in sales, a 3.8% increase. Both companies also saw strong gains in operating profit, reflecting improved efficiency and evolving customer demand.
CU’s operating profit rose 68.6% to 38.1 billion won ($29 million), with growth attributed to expanded product assortments aligned with consumer trends and a focus on operational improvements. The retailer also highlighted the role of specialized store formats, including concepts such as Ramen Library and Dessert Park, in attracting new customers and enhancing the in-store experience.
GS25 reported operating profit of 58.3 billion won ($45 million), up 39.4% compared to the same period last year. Within its convenience segment, sales grew 3.7% to 2.0863 trillion won ($1.60 billion), while operating profit increased 23.8%. Stores emphasizing fresh food offerings delivered strong performance, achieving daily sales levels 1.6 times higher than standard outlets.
Beyond convenience retail, GS Retail’s supermarket division saw sales rise 9% to 453.4 billion won ($349 million), supported by a 32.8% increase in quick commerce, which now represents nearly 10% of total sales. The home shopping unit also recorded growth, with operating profit climbing 32.6%.
The results highlight a broader industry shift toward differentiated store experiences and fresh product offerings to sustain growth in a competitive convenience market.
