Convenience stores rack up strong earnings for Q2Korea’s leading convenience store operators delivered decent earnings in the second quarter of this year on the back of strong sales of new products, including in-house items, their filings showed Thursday.
GS Retail, the operator of GS25, said its net jumped 11.1 percent on-year to 45.8 billion won ($41 million) in the April-June period.
The company posted revenue of 55.7 billion won, up 4.9 percent on-year, and sales of 2.2 trillion won, up 5.3 percent from the same period in 2017. GS Retail attributed the growth in earnings to development of new products at its convenience stores.
Korean convenience store operators have been accelerating their push to develop in-house products to attract more consumers with price competitiveness.
GS Retail said 36.7 percent of sales at its convenience stores, excluding those of alcoholic beverages and cigarettes, came from its private-label products in July.
BGF Retail, the operator of CU, said its net profit came to 67.4 billion won in the April-June period, up 105 percent from the first quarter of this year. The comparable figure for the same period a year earlier was not available, as the company was established in November after separating from BGF.
Its operating profit came to 56.4 billion won, with revenue of 1.48 trillion won.
Shares in convenience stores were bullish on the Seoul bourse Thursday, with BGF Retail advancing 2.11 percent and GS Retail gaining 1.99 percent. The broader Kospi index edged up 0.1 percent.