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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seven-Eleven Korea has closed more than 2,000 stores in the past two years, roughly matching the number of outlets it gained through the acquisition of Ministop in 2022. The move comes as the country’s convenience store sector shows its first-ever decline in total store count, signaling a halt in the industry’s growth momentum.
According to industry data on August 17, Seven-Eleven operated 12,152 stores at the end of 2023, down 2,113 from 14,265 in 2022. Analysts believe the pace of closures has accelerated this year. Although the company sought to consolidate its position in the “big three” convenience store market through the Ministop acquisition, some argue the move has instead eroded profitability.
Korea Seven, the operator of Seven-Eleven, reported second-quarter sales of ₩1.25 trillion, down 9.4% year-on-year, with an operating loss of ₩8.7 billion. In contrast, rivals GS25 and CU posted sales growth of 1.5% and 4%, respectively, highlighting the impact of Seven-Eleven’s downsizing. A company official explained, “We are closing underperforming stores without undermining economies of scale. This streamlining was made possible by the Ministop acquisition.”
Government data also shows that the combined number of stores operated by the three major chains (CU, GS25, Seven-Eleven) fell to 48,057 in the first half of 2024 from 48,722 in 2023, marking the first decline since records began. Factors include weakened consumer sentiment following last year’s martial law declaration, prolonged economic stagnation, and inflation. Korea already has one of the highest convenience store densities globally, with one store per 1,000 people—far higher than Japan (1 per 2,000) or Taiwan (1 per 1,500).
To counter slowing growth, convenience store operators are diversifying revenue streams. Beyond expanding into beauty and ultra-low-cost products, chains are increasingly introducing health supplements. Both CU and GS25 have partnered with pharmaceutical firms to launch a range of supplements priced under ₩5,000 since last month.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
