Convenience Stores Offer Package Delivery Discounts and Grow Traffic

In Korea, customers are embracing the benefits of lower prices by picking up packages at c-stores.

May 11, 2023

SEOUL, South Korea -- Convenience stores around the world are increasingly the site for customers to pick up their packages at Amazon Hub Lockers and similar options because they are convenient for customers and reduce the risk of “porch pirates” stealing packages left unattended outside homes. Now an added benefit that c-stores are using to grow this side of the business: It saves customers money.

In South Korea, convenience store chains GS25 and CU are among the companies offering discounted delivery services for customers. Both companies also are enhancing the rewards to customers who opt to pick up their packages at stores—and perhaps grab a few other items for purchase while they are inside the store.

“An increasing number of customers are looking to make smart consumption choices in the face of high inflation, such as taking advantage of discounts,” Kim Kyung-jin, the head of GS Retail’s quick commerce business division, told newspaper outlet Korea JoonAng Daily.

GS25 debuted its parcel pickup service in 2019 and parcel volume topped 10 million in 2022 alone. CU, which launched its own service a year later, reports that program usage increased more than 21% between January and April 2023.

Both companies are seeking new ways to incentivize customers to take advantage of their services. CU today announced an even steeper discount—up to 55%—on delivery for customers using its mobile app for the program. Meanwhile, GS25 had previously announced discounts throughout the month of May.

This is just one of the many innovations that retailers will see in South Korean stores as part of the NACS Convenience Summit Asia, which takes place March 5-7, 2024, in Seoul.

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