“From Instant Delivery to Next-Day Delivery”… Speed Competition Heats Up in the Convenience Store Industry
GS Holdings Expands "Next-Day Delivery" Service from the Seoul Metropolitan Area to Nationwide
CU Plans to Expand Its "Next-Day Guaranteed Delivery" Service Nationwide
Impact of Changes in Consumer Lifestyles, Including the Spread of E-commerce and Secondhand Marketplaces
[Edaily Reporter SHIN MIN JOON ] Following the trend of same-day delivery, the domestic convenience store industry is now competing to offer next-day delivery services. This shift is driven by changes in consumer lifestyles, as the spread of e-commerce and secondhand marketplaces has increased demand for fast and convenient logistics services. Moving beyond the model of simply acting as intermediaries for parcel drop-offs, domestic convenience store chains are now entering the race for faster delivery speeds by forming direct partnerships with major logistics companies.
A customer at a GS25 store is using a parcel kiosk to register delivery information and weigh a package. (Photo courtesy of GS Retail)
According to the convenience store industry on the 3rd, GS25—a convenience store chain operated by GS Retail(007070)—recently expanded the coverage area for its “Next-Day Delivery” service from the Seoul metropolitan area to the entire country.
“Next-Day Delivery,” a service that guarantees next-day delivery for packages received by 5:00 p.m. on weekdays and by 12:00 p.m. on Saturdays, was first launched in December of last year. As of last July, the number of “Next-Day Delivery” transactions had increased by approximately 400% compared to the initial launch period, reflecting steadily growing demand from customers seeking fast delivery.
The number of drop-off locations has more than tripled compared to before, with the service now operating at approximately 9,500 stores in the Seoul metropolitan area. Delivery is available nationwide, excluding certain areas such as Jeju, remote islands, and mountainous regions. The service is limited to items with a combined length, width, and height of 160 cm or less and weighing 20 kg or less. Fees vary depending on weight. GS25 provides the “Next-Day Delivery” service in collaboration with CJ LOGISTICS.
BGF Retail’s convenience store brand, CU, also operates the “CU Next-Day Guaranteed Delivery” service. Last April, CU became the first in the convenience store industry to launch this service, which guarantees delivery within a single day within the same region.
Items received before 6:00 p.m. every day (excluding Saturdays) are delivered directly to the customer’s designated location the very next day. Notably, CU’s Next-Day Guaranteed Delivery service offers lower shipping rates compared to standard delivery services. Service rates are as follows: △ less than 500 grams (g): 3,200 won; △ 500g to less than 1kg: 3,900 won; △ 1kg to less than 3kg: 4,700 won; △ 3kg to less than 5kg: 5,400 won. These prices are up to approximately 37% lower than those of standard parcel delivery services for items of the same size.
CU’s “Next-Day Guaranteed Delivery” service is currently available only in the Seoul metropolitan area. Like GS25’s “Next-Day Delivery,” CU plans to expand its service coverage nationwide. To enhance the quality of its convenience store delivery services, CU has consolidated its delivery partners—which previously varied by service—under Lotte Global Logistics, effective January 1 of this year.
E-MART Co., Ltd. plans to consider introducing a “Next-Day Delivery” service after establishing its own delivery system. Starting this December, E-MART Co., Ltd. will partner with CJ LOGISTICS to build and operate its own delivery system. Until now, E-MART Co., Ltd.’s delivery service has been operated through a specialized logistics company. Going forward, E-MART Co., Ltd. will directly manage service operations, while CJ LOGISTICS will handle all deliveries. E-MART Co., Ltd. is currently conducting pilot tests at select stores. 7-Eleven does not yet offer the “Next-Day Delivery” service.
The reason the convenience store industry is engaging in a race to improve parcel delivery speeds is the changing lifestyles of consumers. The spread of e-commerce and secondhand markets has made parcel delivery a part of everyday life. For example, according to the Korea Internet & Security Agency (KISA), the size of the domestic secondhand market grew from 26 trillion won in 2023 to 43 trillion won last year. It is projected to reach 50 trillion won this year.
From the convenience store industry’s perspective, customers visiting to use delivery services may make additional purchases, and the process of dropping off or picking up packages can also increase the frequency of customer visits to stores.
A convenience store industry official stated, “More and more consumers are seeking express delivery—where they can receive their packages as early as tomorrow—even through convenience store parcel services,” adding, “Convenience store parcel services are becoming mainstream as they align with the growth of e-commerce and the secondhand market.”
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