Convenience Stores Established Inside Hotels Enjoy Significant Sales Growth

International news
According to BGF Retail on Dec. 22, BGF Retail's cumulative annual sales reached 6.48 trillion won (approximately $4.48 billion) as of Q3 this year, a 5.3 percent increase from 6.15 trillion won during the same period last year. This figure highlights that the sales growth rate of hotel-based stores is at least six times higher than regular stores. Similarly, sales of GS25 convenience stores, operated by GS Retail, in hotels and resorts increased by 17.6 percent year-over-year during the same period.

The increase in convenience store sales within accommodations is largely attributed to foreign tourist spending. According to BGF Retail, the number of overseas payment transactions at CU stores located in hotels and resorts increased by 165.2 percent year-over-year through November this year.

As sales and profits outpace rental costs, the number of convenience stores in hotels is also increasing. As of November, CU had 137 hotel and resort locations, an increase of six compared to a year ago. With metropolitan areas nearing saturation, new store openings have become more challenging. However, hotels guarantee basic revenues once stores are established, leading to intense competition for entry. GS25 has 82 stores, 7-Eleven has 56 stores, and Emart24 has 24 stores located exclusively in hotels, all showing consistent annual growth.

An industry insider remarked, “Convenience stores are increasing not only in family-oriented resorts but also in luxury four- and five-star hotels. In the past, hotel operators were reluctant to allow convenience stores, but now they are often the ones proposing partnerships.”