GS Retail Reports 39% Increase in Q1 Operating Profit Driven by Convenience Stores and Supermarkets

GS Retail reported a 39.4% increase in operating profit for the first quarter of this year, reaching 58.3 billion won, thanks to strong performance in its convenience stores, supermarkets, and home shopping sectors. The company attributed this growth to the expansion of GS25 stores focusing on fresh products, the opening of GS The Fresh franchises, and the rise of GS Shop's private label products.

During the same period, sales rose by 3.8% to 2.85 trillion won. GS25 convenience stores generated sales of 2.06 trillion won and operating profit of 21.3 billion won, marking increases of 3.7% and 23.8%, respectively, compared to the previous year. GS Retail noted that its strategy of enhancing fresh product offerings and its scrap-and-build approach—expanding existing stores or relocating to prime locations—contributed to these results.

The performance of fresh-focused stores was particularly notable, with average daily sales 1.6 times higher than regular stores. Additionally, the increase in foreign tourists positively impacted convenience store sales, with foreign revenue at GS25 soaring by 73% year-on-year.

GS The Fresh supermarkets benefited from a franchise-centered expansion strategy, increasing their store count to 589. Sales reached 453.4 billion won, up 9%, while operating profit surged by 55.1% to 12.1 billion won. A GS Retail representative stated, "The synergy from expanding franchise operations and leveraging supermarket stores for quick commerce has been effective."

Home shopping segment GS Shop also saw improved profitability, with first-quarter sales of 262 billion won, a 1.6% increase, and operating profit of 29.7 billion won, up 32.6%. The introduction of new and exclusive products in key categories like fashion, beauty, health, and food contributed to this growth.

In the first quarter, GS Shop launched 141 new products, an increase of 36 from the previous year. The success of its in-house fashion brands, such as Core Authentic and Rene Crew, also helped boost fashion sales by 7% year-on-year.

A GS Retail representative remarked, "Our efforts to strengthen core business foundations have led to these strong first-quarter results. We will continue to enhance our business structure for stable long-term growth."

Meanwhile, GS Retail CEO Heo Seo-hong emphasized at the March shareholders' meeting the commitment to expanding investments in artificial intelligence and digital tools to enhance operational competitiveness.