GS Retail announced on Sunday a significant increase in fresh food preorders at its GS25 convenience stores, fueled by growing demand from younger consumers. The company plans to expand its offerings in this category to meet the evolving needs of its customer base.
According to GS Retail, its mobile app-based preorder service saw substantial growth after running four promotional events in January and February. These promotions resulted in approximately 20,000 orders, driving a 540% increase in fresh food sales through the app compared to the same period last year.
This innovative model allows customers to conveniently browse and purchase fresh, perishable items online and then pick them up at their local GS25 store. This system overcomes traditional limitations of convenience retail by facilitating advance orders and offering a broader selection of products without the risk of spoilage associated with on-site inventory, according to the company.
The service is particularly popular among younger demographics. Consumers in their 30s represent the largest portion of buyers, accounting for 38% of orders, followed by those in their 20s at 28%. Together, these two age groups make up roughly 70% of all orders placed through the app.
GS25 attributes this trend to two key factors: the increasing number of single-person households in Korea and a growing preference for shopping locally rather than making trips to large supermarkets.
In response to this increasing demand, the company intends to further develop the preorder model by expanding its selection of smaller-portioned products tailored to single-person households. They also plan to open more fresh-food-focused store formats in residential areas.
“This service expands the range of fresh foods accessible to customers beyond the space constraints of our convenience stores,” stated a GS Retail official. “We will continue to provide seasonal products and timely promotions at competitive prices to meet the evolving needs of our shoppers.”
