[Edaily Reporter SHIN MIN JOON ] The convenience store industry is expanding its network of specialty stores that focus on specific product categories for each company. With the number of convenience stores in South Korea exceeding 50,000 and the market reaching saturation, companies are shifting their expansion strategy away from simply increasing the number of stores and toward opening specialty stores that highlight products with high consumer demand.

According to the Ministry of Trade, Industry and Energy on the 5th, the total number of convenience stores in South Korea stood at 53,475 as of last August. This represents an increase of approximately 4% compared to the 53,266 stores recorded at the end of last year. Last year, the total number of stores operated by the four major domestic convenience store chains declined for the first time since the introduction of convenience stores in Korea. However, the number of stores has begun to rise again this year. This is attributed to the expansion of specialty stores by each company.

The domestic convenience store industry is pursuing differentiation by introducing stores that emphasize specific categories, such as health functional foods and fresh foods. CU, operated by BGF Retail, is expanding its specialized store formats—including those focused on health functional foods and grocery shopping—to its franchise locations.

CU was the first in the domestic convenience store industry to begin selling health functional foods at approximately 6,000 stores nationwide starting in July of last year. It implemented a strategy to quickly capture the market by offering a lineup centered on small-volume, individually packaged products tailored to convenience store customers, with prices averaging 5,000 won or less.

CU’s cumulative sales of health functional foods have exceeded 1.3 million units since their initial launch. CU plans to increase the number of stores offering health functional foods by more than 2,000 this year. CU will also be rolling out differentiated products developed in collaboration with leading domestic and international health functional food brands, such as Rotbecschen and CHONGKUNDANG(185750).

CU also operates approximately 300 grocery-focused stores. These stores feature a higher proportion of fresh foods, meat, and frozen items compared to traditional convenience stores. CU plans to expand its grocery-focused store network to 500 locations by the end of the year.

GS Retail(007070)GS Holdings, which operates GS25, is continuously expanding its Fresh-Focused Stores (FCS). Fresh-Focused Stores (FCS) offer a selection of over 400 to 500 grocery-related items—including agricultural, livestock, and seafood products such as vegetables, fruits, eggs, and meat, as well as seasonings, sauces, tofu, and ready-to-eat meals—compared to standard convenience stores. These stores are primarily located in residential commercial districts with a strong customer base, such as apartment complexes, multi-family housing, and townhouses.

Sales of fresh foods at these specialty stores are approximately 10 times higher than at standard stores. In stores where fresh foods account for a high proportion of sales, they make up more than 20% of total revenue. Following the milestone of surpassing 1,000 stores early last month, the number of fresh-specialty stores had increased to 1,077 as of the end of September. GS Holdings aims to exceed 1,100 fresh-specialty stores this year.

Seven-Eleven, a subsidiary of the Lotte Group, operates “New Wave” stores. These stores aim to build a young and trendy brand image and enhance franchisee competitiveness by emphasizing merchandise planning (MD) tailored to specific commercial districts and modern, stylish interior design. Seven-Eleven arranges sections such as △ the Wine & Liquor Zone, △ the Fashion & Beauty Zone, △ the K-Ramen Zone, △ the Global Products Zone, and △ the dining area differently for each store based on the characteristics of the commercial district. Seven-Eleven currently operates about 20 New Wave stores nationwide. The company is also expanding its New Wave stores to regional hubs and tourist destinations.

E-MART Co., Ltd. operates three specialty stores in Seongsu and Myeongdong. The Trend Lab Seongsu branch, serving as a flagship store, regularly hosts new pop-ups and collaborative content with SG CO., LTD. and LEGO without any restrictions. The Dessert Lab Seoul Forest branch features a dessert-centric product lineup and space design, characterized by its combination of stay-and-enjoy experiences such as dessert and wine pairings and terrace-style seating. The K-Food Lab in Myeongdong is designed to allow customers to experience a variety of Korean foods in a single space. It boasts the industry’s largest selection of instant noodles.

The convenience store industry is expanding its specialized stores because the domestic market has reached saturation, prompting a shift in growth strategies. Since performance varies even among stores of the same chain depending on the commercial district and store format, companies are focusing on improving profitability by prioritizing specialized product categories with high consumer demand.

A convenience store industry official stated, “Rather than blindly increasing the number of stores, the industry is focusing on creating high-quality stores,” adding, “We have entered an era where quality takes precedence over quantity.”