GS25 reports first store decline as efficiency strategy reshapes growth
The retailer’s store count falls for the first time as CEO Heo shifts focus from expansion to improving performance across the network.
GS25 has recorded the first store count decline in its history, reflecting a strategic shift under CEO Heo Seo-hong toward operational efficiency rather than rapid expansion. The change marks a significant moment for one of South Korea’s largest convenience store brands, which had previously added more than a thousand stores annually.
According to GS Retail’s latest business report, GS25 ended last year with 18,005 locations, down from 18,112 the previous year. The company’s aggressive expansion slowed in 2024 and eventually turned negative as Heo’s “substance-focused management” approach began to reshape priorities.
A central element of this strategy is a “scrap and build” model, where underperforming stores are renovated or closed and replaced with new sites in stronger commercial areas. Despite the smaller network, GS25’s total sales rose by roughly 6%, indicating that the focus on efficiency is gaining traction.
Improvements also appeared in same‑store performance. Year‑on‑year sales growth averaged 0.9% in the first quarter of 2025 and 0.1% in the second quarter shortly after Heo’s appointment. The trend strengthened later in the year, rising to 4.4% in the third quarter and 3.6% in the fourth.
Rival CU has continued to grow despite these conditions, ending 2025 with more locations and planning further expansion while restructuring its network around profitable sites.
