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Convenience stores tap into foreign demand as sales slide

Published: 02 May. 2025, 13:03 Updated: 02 May. 2025, 14:44

A customer operates a PDA-based AI interpretation services in a CU store. [BGF RETAIL]

Amid the first negative sales growth recorded since accumulating data in 2013, Korea’s convenience store industry is intensifying efforts to attract foreign customers in a bid to improve sales.

The strategy targets not only the 16 million annual inbound tourists but also the 2.5 million foreign residents in Korea. By offering tailored services, retailers aim to enhance their global brand image while driving revenue growth and expanding their international footprint.

From translation to visa support
CU, operated by BGF Retail, is leading the charge in foreigner-focused services. On Thursday, it became the first convenience store chain to offer visa agency services. Last month, it also introduced an AI interpretation service.

The visa assistance is aimed at foreign residents in Korea, who numbered around 2.5 million in 2023. Visa issuance or extension can take up to two months and typically requires a visit to an immigration office. CU partnered with K-Visa, a company specializing in visa services, to handle the process.

Customers can fill out a form at a CU store and connect with a licensed administrative agent to complete their visa application. The service has launched at 50 stores in areas with large foreign populations — such as Daerim, Hongdae, Itaewon and Dongdaemun — and will expand to 1,000 locations by the end of the year.

The AI interpretation service supports 38 languages, including English, Japanese, Chinese and Czech. Currently being piloted at five company-run stores in Myeong-dong, Hongdae and Incheon International Airport, the service syncs CU’s hand-held PDA devices with customers’ smartphones. When a customer speaks in their native language, the translated text appears on the clerk’s device.

A poster of CU's visa agency services [BGF RETAIL]

Hallyu-themed stores for tourists
GS Retail, which operates GS25, is also ramping up services tailored to foreign tourists. In March, the chain installed a new currency exchange kiosk capable of handling 15 currencies, including the dollar, yen, euro and yuan, 24 hours a day. The machines also issue and recharge prepaid cards.

Since last year, GS25 has been boosting K-pop album sales at locations near major tourist spots, including Incheon Airport.

“We’re enhancing accessibility so that tourists’ first shopping experience in Korea can include K-pop albums and merchandise,” a GS Retail spokesperson said. “We also plan to expand financial services for foreigners, such as currency exchange, tax refunds and prepaid card top-ups.”

7-Eleven is using some of its stores as pop-up spaces for K-pop merchandise. In February, the Dongdaemun Dundun branch began selling albums and unreleased photo cards from K-pop boy band CIX. The company said it is operating these themed stores in tourist-heavy areas like Dongdaemun to collect data on consumer behavior.

“We’re analyzing demand from foreign tourists through these stores, where customers can experience K-pop and Korean food,” a company spokesperson said. “The insights will inform our global expansion strategy for 7-Eleven.”

A customer uses the currency exchange kiosk at a GS25 store. [GS RETAIL]

Will the strategy reverse declining sales?
The industry's pivot toward foreign customers is a response to a weakening domestic market. According to the Ministry of Trade, Industry and Energy, convenience store sales in the first quarter dropped 0.4 percent on year, marking the first quarterly decline since 2013.

Experts attribute the slump to weakened consumer sentiment amid high inflation and interest rates. The Bank of Korea reported that April’s Composite Consumer Sentiment Index (CCSI) fell to 93.8, remaining below the neutral benchmark of 100 for five consecutive months.

Convenience store chains see foreign customers as a key growth driver. In popular tourist areas like Myeong-dong and Hongdae, foreigners already account for more than half of total sales. At CU’s themed “ramyeon library” branch in Hongdae, nearly 80 percent of revenue comes from foreign shoppers, according to BGF Retail.

“Many tourists consider visiting convenience stores an essential part of their Korean travel experience,” said Lee Eun-hee, professor emeritus of consumer studies at Inha University. “Offering specialized services for foreigners can boost store revenue and enhance the industry’s image for global expansion.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KYUNG-MI [[email protected]]