The number of convenience store locations in South Korea fell by nearly 1,600 last year, marking the first decline since the industry's introduction in 1988.
According to the Ministry of Trade, Industry and Energy on Sunday, the combined store count of Korea's four major convenience store chains—GS25, CU, Seven Eleven, and Emart24—stood at 53,266 at the end of last year. This represents a decrease of 1,586 stores from 54,852 the previous year.
Industry observers point to market saturation as the primary cause of the decline. Japan, with a population of approximately 120 million—more than double that of South Korea—has only around 57,000 convenience stores, suggesting that Korea's convenience store density has become excessive.
Rising labor costs have also pressured store survival. Annual minimum wage increases have eroded franchisee profitability, leading to a wave of closures. The prolonged economic slowdown and high inflation have further weakened consumer spending power, contributing to the store reduction.
Shifting consumption patterns have also worked against convenience stores. As consumers increasingly favor ultra-low-price products amid the economic downturn, convenience stores—with their relatively higher price points—have been the first offline retail channel to suffer.
These trends are reflected in performance metrics. Total sales growth for the four convenience store chains reached just 0.1 percent year-on-year last year. Given that the sector was considered a major beneficiary of government consumption coupon policies, analysts describe the near-flat growth as effectively negative.
Sales growth has decelerated sharply each year. Year-on-year sales growth for the four chains fell from 8.0 percent in 2023 to 3.9 percent in 2024, and then to 0.1 percent last year. Purchase transactions, which showed an increase in December 2024, had turned negative a year later.
In response, the industry has shifted from aggressive expansion to selective consolidation. Seven Eleven has pursued a store efficiency strategy, reducing its store count from 14,265 in 2022 to 12,152 by the end of 2024. The chain carried out strategic closures of approximately 700 stores in the first half of last year.
Securities analysts expect the convenience store industry's recovery to remain difficult for the time being. BGF Retail, which operates CU, is projected to post a slight decline in annual operating profit last year, while GS Retail's convenience store division is also expected to see negative growth this year.
However, while overall store count has declined, per-store sales have improved. According to the Ministry of Trade, Industry and Energy, sales per convenience store reached 51.135 million won at the end of last year, up more than 4 percent from the previous year.
