Eating gimbap and drinking iced Americanos like Koreans... Convenience-store sales to North Americans surge

[Financial News] With the number of domestic stores nearing saturation, sales to foreign tourists are emerging as a new growth driver for the convenience store industry. The number of foreign visitors to Korea is rising amid the global wave of K-pop and K-content, while everyday Korean foods such as banana milk and gimbap are becoming part of tourists’ spending. In particular, foreign consumer spending, once concentrated mainly among Chinese-speaking markets, is rapidly diversifying toward English-speaking markets and beyond.
According to the Korea Tourism Organization (KTO) on the 16th, 15.05 million foreign tourists visited Korea from January to August this year, up 21.6% from the same period a year earlier and a record high. In particular, the number rose by at least 20% year on year for three consecutive months, from June to August. Cumulative foreign tourist spending from January to September also climbed 46.8% from a year earlier to 15.845 trillion won. The increase in interest in Korean culture, led by K-pop and K-content, as well as improved accessibility through new and expanded direct flight routes to Europe and the Americas, is believed to have contributed to growing demand for visits to Korea.
The increase in North American tourists is particularly notable at convenience stores. GS25’s sales to North American customers from January to August this year rose 130.9% year on year, the highest growth rate of any region. North America’s share of total sales to foreign customers also reached a record high of about 30%, narrowing the gap with Chinese-speaking markets, at about 40%, to around 10 percentage points. At CU, sales to North American customers rose 116.4% over the same period, far outpacing the 72.5% increase for Chinese-speaking markets.
The products sought by foreign customers are changing, too. Spending is expanding beyond signature products already known overseas, such as banana milk, to include foods and everyday meals that have recently become popular in Korea. At CU, product categories with the highest sales growth among North American customers included rice cakes (176.8%), freshly brewed coffee (174.8%), ramen (171.2%) and gimbap (170.3%).
A similar trend was seen at 7-Eleven. Sales to foreign customers from January to September this year rose 70% year on year. Dessert sales surged 400%, led by popular products such as Jersey milk pudding, fresh Choco Pie and Dubai chewy cookies. They were followed by refrigerated snacks (99%), snacks (98%), stationery and toys (93%), and dairy beverages (91%). The company said products that have gained popularity in Korea, including Jersey milk pudding, made-to-order smoothies and bulgogi gimbap, are also being purchased by foreign customers.
The industry is also stepping up efforts to turn growing inbound demand into actual purchases. GS25 displays English alongside Korean on promotional materials at about 1,000 key stores that receive many foreign visitors, and provides recommendations on how to enjoy individual products. 7-Eleven has also added English, Chinese and Japanese labeling to its “K-Heritage Snacks” and upgraded its payment options, including Alipay and WeChat Pay.
A GS25 representative said, “Spending by foreign tourists is moving beyond a pattern concentrated in particular countries and regions and expanding across a wider range of nationalities and regions. We will closely analyze foreign customers’ spending data and continue to strengthen services tailored to the characteristics of each store and product.”
[email protected] Kim Hyun-ji Reporter