First it was a coffee prices spearheading the battle between South Korea’s fiercely competitive convenience store brands. Now one player is shifting the battleground to courier services.
GS25, a major convenience-store chain operated by GS Retail Co introduced a new “half-priced” delivery service this week, promising discounts of up to 65 per cent compared to conventional convenience-store parcel-delivery services.
The new service works by customers taking items for delivery to a GS25 store and the recipient visiting a GS25 store to collect it.
It takes about four days from reception to receipt, but GS25 believes the 65 per cent cost saving will attract customers.
If a customer sends a parcel weighing 10kg and worth US$441 by parcel post, the price of a regular convenience store package is 6000 won, but under the new GS25 service it will cost just 2100 won.
However, goods weighing more than 10kg or with a total height of more than 1 metre, goods worth more than 500,000 won, and food items that may spoil cannot be sent using the half-price delivery option.
The new service is carried out entirely through GS25’s existing infrastructure, including the receipt of goods, delivery and pick up.
- Ashley Song writes for Korea Bizwire.