Many say the convenience store market is already saturated. Nevertheless, GS25 is leading the industry with surprising performance in the first quarter of this year. Unlike the past, when it was solely focused on increasing the number of stores, it now seems to be the result of strengthening its internal capabilities and competing with differentiated strategies. In particular, its recent collaboration with the globally popular Super Mario Galaxy is widely regarded as a ‘stroke of genius’.
GS25’s efforts to provide new experiences to customers, beyond simply selling products, have been proven by the numbers. It’s necessary to take a deep dive into GS25’s strategy, which stands out in fierce competition.
GS25’s Q1 Performance: A Victory for the ‘Strengthening Internal Capabilities’ Strategy
GS25 recorded sales of 2.0863 trillion won in the first quarter of this year, a 3.7% increase compared to the same period last year. What’s more noteworthy is that operating profit surged by an impressive 23.8% to 21.3 billion won. Existing store sales also increased by 4.7%, which is analyzed as a result of focusing on improving the efficiency of existing stores instead of competing for store expansion.
- Expansion of Fresh Food-Focused Stores: Stores that enhanced fresh food offerings had 1.6 times higher average daily sales compared to regular stores, and their number expanded to 836.
- Scrap-and-Build Strategy: The ‘scrap-and-build’ strategy, which boldly closes unprofitable stores and relocates and reopens them in large, prime locations, significantly contributed to improving profitability.
- Surge in Foreign Tourist Sales: Driven by the K-culture craze, convenience store usage by foreign tourists surged. GS25’s Q1 foreign payment sales increased by 73% year-on-year, setting a new record.
As such, GS25 is actively responding to market changes with a strategy focused on substantial sales and profitability growth, rather than simply expanding its external appearance.
Targeting MZ Generation with IP Collaboration? The Super Mario Galaxy Effect
In May of this year, GS25’s collaborative products with the global hit ‘Super Mario Galaxy’ received an explosive response immediately upon release. In particular, lunchboxes containing limited edition merchandise caused a complete sell-out. This is GS25’s clever strategy to provide customers with special experiences and collectible value, beyond simple character products.
- Launch of Diverse Collaborative Products: A total of 9 collaborative products, including Super Mario lunchboxes, Mushroom Pizza Sandwiches, and Mario 3-Tier Power-Up Burgers, were sequentially released.
- Limited Edition Keycap Giveaway: Super Mario lunchboxes come with one random keycap out of 13 main characters like Mario, Luigi, and Yoshi, stimulating the desire to collect.
- Differentiated MD Strategy: Through its collaboration with ‘Super Mario Galaxy’, GS25 is strengthening its differentiated merchandise planning (MD) strategy and focusing on expanding IP partnerships.
Such IP collaborations accurately tap into the ‘funsumer’ psychology of MZ generation consumers, making visiting convenience stores an enjoyable experience, like a game. In fact, this strategy of ‘freeze-drying’ customer experiences has been quite successful.
Win-Win Coexistence with Franchisees, GS25’s Sustainable Management
GS25 also does not neglect its efforts for win-win coexistence with its franchisees. Through the 2026 mutual growth support system, it is striving to improve franchisee profitability and the quality of life for store owners. This seems to be a commitment to building a sustainable management model where the convenience store headquarters and franchisees grow together.
- Increased Inventory Disposal Support Limit: Reflecting the trend of shorter product lifecycles, the annual inventory disposal support limit per store has been raised to 1.08 million won, the highest in the industry.
- Expanded Franchisee Welfare Programs: Considering the increasing number of long-term operating stores, the ‘Health and Psychological Care Program’ for franchisees’ health and psychological well-being will be expanded.
- Enhanced Operational Support: The scope of support for improving hygiene and facility management, such as water purifier filter replacement and drainage facility management, will be expanded, and embezzlement insurance and parcel theft insurance will continue to be provided for operational stability.
They understand well that supporting franchisees to operate their stores stably ultimately leads to the competitiveness of the entire GS25 brand.
Ultimately, GS25 is setting new standards in the convenience store industry with strategies that accurately penetrate changing market trends and consumer desires, going beyond being a simple distribution channel. It remains to be seen how far these actions – strengthening internal capabilities, adding freshness with bold IP collaborations, and not neglecting win-win coexistence with franchisees – will take GS25 in the future.