Shoppers select vegetables at a supermarket in Seoul on June 26, 2022. The average food bill for a four-person household in the first quarter of 2022 jumped 9.7 percent on-year to 1.06 million won (US$823), according to the data compiled by Statistics Korea. (Yonhap)
SEOUL, Sept. 6 (Korea Bizwire) – As inflation continues to squeeze household budgets, South Korean consumers are increasingly turning to budget-friendly options at convenience stores.
CU, one of the country’s leading convenience store chains, reported a significant surge in sales of products priced under 1,000 won on September 5.
The trend reflects a broader shift in consumer behavior as South Koreans grapple with persistently high living costs. According to CU, sales growth for sub-1,000 won items has maintained a robust trajectory, jumping from 10.4% in 2021 to 23.3% in 2022 when inflation spiked.
The momentum continued with 21.1% growth in 2023 and has further accelerated to 27.3% in the first eight months of this year.
“The impact of high inflation is directly mirrored in retail sales, particularly in convenience stores where individual item purchases are common,” a CU representative stated.
CU, one of the country’s leading convenience store chains, reported a significant surge in sales of products priced under 1,000 won on September 5. (Image courtesy of BGF Retail)
“We’re seeing a marked preference for value-for-money consumption.”
Responding to this trend, CU has consistently introduced a range of differentiated products priced under 1,000 won.
Notable successes include an 880-won cup of beef soup ramen and a 990-won snack, both launched earlier this year, which have surpassed cumulative sales of 600,000 and 500,000 units respectively.
A 1,000-won tofu product introduced last month saw 30,000 units sold within just two weeks.
In its latest move to cater to budget-conscious consumers, CU partnered with Binggrae, a major South Korean food and beverage company, to launch a 990-won milk product on September 4.
Available in chocolate and strawberry flavors and packaged in 300ml containers, these offerings are more than 50% cheaper than comparable products in CU stores.
Kwon Yu-jin, a merchandising manager at BGF Retail, CU’s parent company, explained the strategy: “By introducing ultra-low-priced versions of top-selling processed milk drinks, we aim to support our customers’ efforts to economize.”
Ashley Song (ashley@koreabizwire.com)
