GS The Fresh, operated by GS Retail, announced on June 23 that it will expand its 'Business Activation Program' to enhance franchise competitiveness, introducing new incentives for top franchises and embezzlement insurance support. [Photo=GS The Fresh]
GS The Fresh is strengthening support for its franchises, which now account for over 80% of its stores, to enhance profitability and operational stability. The business activation budget will increase by 25% compared to last year, and the number of stores receiving tailored consulting will expand to about 60 each month.
On June 23, GS The Fresh announced the expansion of its 'Business Activation Program' aimed at boosting franchise competitiveness, along with the introduction of new incentives for top-performing franchises and embezzlement insurance support.
The Business Activation Program targets stores facing sales challenges due to changes in the market or competition, as well as franchises with potential for additional growth.
Every month, GS The Fresh's business experts will select stores to analyze their sales structure and operational status, providing tailored improvement suggestions for product displays, promotional events, and customer service. The company will cover the costs of special promotions for key products, including fresh food.
Last year, the program was implemented in about 50 franchises each month. The sales of key products, including fresh food, at supported stores saw increases of up to 97.8%, and the average daily customer visits rose by 25.6%.
This year, the number of supported stores will increase to about 60 each month, with the related investment budget also expanded by 25% compared to the previous year. The plan focuses on leveraging the company's analytical and promotional capabilities for franchises that need performance improvements or are facing changing business environments.
A new incentive program will also be established to motivate franchise owners. Top stores will be selected based on a comprehensive evaluation of their competitiveness in fresh food, sales growth rates, and quick commerce performance, with successful operational cases shared among other franchises.
Additionally, safety measures have been added to guard against financial incidents that may occur during store operations. The company will provide a free insurance package to all franchises, including embezzlement insurance to cover losses from employee theft.
Currently, GS The Fresh operates 596 stores, with 486 of them being franchises, accounting for over 81% of its total stores. The shift from a company-owned supermarket model to a franchise-centered approach has made the company's store management and support capabilities a key factor in its business competitiveness.
In the first quarter of this year, GS The Fresh reported sales of 453.4 billion won, a 9% increase from the same period last year, while operating profit rose by 55.1% to 12.1 billion won. The growth has been attributed to new openings, increased sales at existing stores, and the expansion of quick commerce.
Sales from quick commerce surged by 32.8% compared to the previous year, marking the first time it accounted for 10% of total sales.
Kim Dong-young, head of the franchise support team at GS The Fresh, stated, "The stable growth and profitability of our franchises are key to our brand competitiveness. We will continue to expand practical support that franchise owners can feel, fostering a win-win management approach where both the headquarters and franchises grow together."
* This article has been translated by AI.
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