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Convenience stores launch smaller-sized products for price-conscious consumers

Published: 18 May. 2025, 18:06

A customer shops at a convenience store in Seoul. [BGF RETAIL]

Convenience stores that had once emphasized cost-efficiency by rolling out bulk-sized products are now making a U-turn back to smaller-packaged daily necessities.

This shift stems from a noticeable decline in consumer sentiment, as convenience store sales fell quarter-on-quarter for the first time since statistics began in 2013.

Their new strategy targets budget-conscious one- and two-person households by boosting performance through compact-sized products.

Korea Seven, which operates 7-Eleven, announced on Sunday that it will release smaller sizes for kitchen detergents Pure Poddeuk and Actz Perfect Baking Soda and fabric softener Pigeon Concentrated Mystic Rain starting Wednesday.

These products, reduced to 300 milliliters (10.1 ounces) in size — about 20 to 30 percent the volume of standard sizes — are priced at 3,000 won ($2.20).

The release specifically targets one- and two-person households who shop at convenience stores.

"With high inflation persisting, more people are buying only what they need," said Kim Yeo-rim, merchandise director on the lifestyle service team at 7-Eleven. "We plan to expand our range of compact, specialized products across both food and nonfood categories."


GS25 and CU join the trend

GS25 launched 3,000-won moisturizers, body washes and body lotions in February after seeing strong sales of smaller-sized sun creams, serums and cleansing foams that debuted in December last year.

CU and GS25 stores in Seoul on May 12 [YONHAP]

Sales of those items during the first week of February jumped 35.4 percent from the same period a year earlier.

"These are already well-established products among consumers, and releasing them in small sizes has resonated well with the millennial to Gen Z segment, which values smart spending," GS Retail, which runs GS25, said.

BGF Retail, which operates CU, also saw success with 3,000-won serums, moisturizers and face masks and 4,500-won acne patches that launched last year.

The company partnered with small- and mid-sized suppliers, previously active mainly online, introducing products that contain 30 percent of the original volume.

"Among consumers in their teens and twenties, convenience stores have become the main shopping channel," a BGF Retail official said. "It's not just about smaller size and cheaper prices — on a per-milliliter basis, these products are up to 80 percent cheaper than the originals."

From bulk to bite-sized

Just a few years ago, convenience stores raced to meet growing demand for daily necessities by launching large-volume, budget-friendly products.

They competed even with large discount chains by offering ultralow prices through increased quantities and lower per-unit prices.

As recently as the first half of 2023, large-volume household items over 1 liter (0.2 gallons), including detergents, shampoos, conditioners, soaps and body washes, recorded sales growth at GS25, CU and 7-Eleven and outpaced small-sized products by over 10 percentage points.

These products typically have a shelf life of about three years, making them suitable for long-term use.

During that period, convenience store chains joined forces with household goods manufacturers to introduce large-sized, private-label items that could compete with prices at hypermarkets.

But with the economy sluggish and more consumers looking to cut back on immediate spending, the industry is once again turning to low-priced, small-packaged products.

Retailers also considered that their core customers — one and two-person households — often live in smaller spaces with limited storage, such as living rooms or utility areas and thus prefer compact goods.

"With the consumption slowdown, more customers are trying to minimize expenses, which makes small-sized products more popular than bulk ones," a convenience store industry official said. "We also plan to expand our range of compact fresh food items, such as half-sized radishes or packs of two onions, where convenience stores have a competitive edge."

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