GS25 Store Count Drops for First Time as CEO Heo's Profitability Drive Takes Hold

GS25, South Korea's major convenience store chain operated by GS Retail (007070.KS), has recorded its first-ever decline in store count as CEO Heo Seo-hong's "substance-focused management" strategy moves into full swing. The company is prioritizing profitability over expansion.

According to GS Retail's annual business report released on the 24th, GS25 had 18,005 stores as of the end of 2025. The company had initially planned not to disclose its store count, but the figure was confirmed through an attached business report. The total represents a decrease of approximately 100 stores from 2024's 18,102, marking the first time GS25's store count has contracted.

The shift is attributed to the "substance-focused management" strategy that CEO Heo has championed since taking office. Profitability metrics are showing improvement. Average revenue per GS25 store rose to 496.5 million won last year from 478.72 million won a year earlier, an increase of roughly 20 million won.

GS25 has been strengthening its "scrap and build" strategy — renovating or closing stores where performance has stagnated for more than a year and reopening in more competitive commercial districts. The company is restructuring its network to boost per-store efficiency rather than pursuing scale. According to industry sources, GS25's store count is likely to continue declining for the time being after peaking in 2024.

Rival CU, operated by BGF Retail, is maintaining an expansion-focused approach. CU's store count stands at 18,711 and continues to grow steadily. The company has set a target of a net increase of approximately 300 stores this year.