GS Retail (007070) is doubling down on fresh food products, where it holds a competitive advantage, to overcome the stagnant offline retail market. The company is launching the first "salmon specialty zone" among corporate supermarkets (SSM) while aggressively expanding fresh food-dedicated stores in its convenience store chain.
According to industry sources on the 4th, GS The Fresh, the SSM operated by GS Retail, has been running "salmon specialty zones" at select locations including the Jamwon branch in Seoul since last month. These zones offer approximately 50% more salmon products than standard stores. Beyond basic fillets and grilling cuts, the stores feature differentiated products rarely found elsewhere, including smoked gravlax, a Northern European-style cured salmon. Sales at these locations are reportedly more than 40% higher than other stores.
Freshness is the key to popularity. GS The Fresh supplies raw salmon products in the specialty zones processed to "Trim F" grade. Trim F goes one step beyond "Trim E," the standard distribution grade, by completely removing bloodline meat. This results in higher freshness and virtually no fishy odor. The company also exclusively sources "Superior" grade salmon to ensure quality competitiveness.
"Our strategy of partnering with the Norwegian Seafood Council to enhance expertise has precisely targeted demand from women in their 20s and 30s who prefer fresh, premium seafood," a GS Retail official said. "Building on this success, we plan to expand salmon specialty zones to 100 stores by year-end."
GS25, the convenience store chain, is also rapidly expanding its Fresh-focused Convenience Stores (FCS), a core element of its fresh food strategy. FCS stores carry 300 to 500 additional grocery items compared to standard convenience stores, including agricultural products, seafood, meat, seasonings, sauces, tofu, and ready-to-eat meals. From just three locations in 2021, FCS stores surpassed 500 in 2024 with steep growth. After exceeding 774 stores last year, the company plans to reach 1,100 stores within this year.
"As the customized logistics and sales support system spanning GS25 and GS The Fresh has successfully taken root, fresh food quality control and supply chains are expected to become even more robust," an industry official said. "With offline retail growth stagnating recently, a strategy focused on fresh food and specialty stores could help compete against the online market."
GS Retail's moves are interpreted as a strategy to strengthen fundamentals by expanding proven fresh food specialty stores rather than pursuing aggressive expansion amid weak offline retail conditions. According to the Ministry of Trade, Industry and Energy, online retailers' sales in January this year increased 8.2% year-on-year, while offline retailers' sales declined 0.6%. SSM food category sales fell 4.2% compared to the same month last year, indicating a widening gap between online and offline retail markets.