Cosmetics are now front and center at Korea's convenience stores

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Cosmetics are now front and center at Korea's convenience stores

Published: 25 Aug. 2025, 13:56 Updated: 25 Aug. 2025, 14:13

Audio report: written by reporters, read by AI

A 7-Eleven New Wave branch in Jongno District, central Seoul, on Aug. 21 features a cosmetics display at the entrance, unlike a typical branch. [NOH YU-RIM]

At a revamped 7-Eleven in central Seoul, the first thing that greets shoppers is not rows of chips or cans of soda but a wall of cosmetics.

Skincare products, sunscreens and lip balms sit where sandwiches once did while socks and toiletries fill the middle aisles. Only at the back, past the glow of bright lighting that feels closer to a beauty shop than a corner store, do drinks and snacks appear.

At GS25’s Seosomun branch in central Seoul, dietary supplements now stand where cigarettes once dominated. A large sign promotes liquid magnesium at a discount. One customer who came in for a drink added vitamins from the shelf before checking out. Health products have displaced cigarettes at the counter.

Convenience store chains are aggressively reshaping their offerings to highlight beauty and health supplements. After years of relying on expansion for growth, the industry has entered a slowdown, and operators are revamping their floor space to improve profitability.

A 7-Eleven franchisee who operates four branches in the “New Wave” layout — a franchise model introduced in October of last year — says the new design is profitable.

“Some stores that switched to the New Wave format more than doubled their sales,” the official said. “We plan to expand these younger-looking stores to strengthen store profitability.”

GS25, in partnership with fashion and beauty retailer Musinsa, announced on July 2 that it will begin selling 3,000 won ($2.16) cosmetics at convenience stores, following its earlier collaboration to offer fashion products. A model looks at the items in this photo provided on July 2. [GS25]

Stagnant growth pressures

The strategy shift reflects a tougher retail environment in Korea. In the first half of this year, CU operator BGF Retail and GS25’s GS Retail reported year-over-year operating profit declines of 16.4 percent and 15.4 percent, respectively. 7-Eleven recorded a loss.

Sales growth also slowed: GS25 reported first-half sales of 4.24 trillion won ($3.1 billion), up just 1.4 percent from a year earlier, while CU recorded 4.21 trillion won, a 2.2 percent increase. 7-Eleven’s revenue dropped 6.4 percent to 2.39 trillion won.

Chains are moving away from simply adding more stores and are instead diversifying product categories. With fewer people and more consumption online, the traditional model has reached its limits.

Targeting younger consumers who are quick to embrace changing shopping trends, operators are now placing cosmetics ahead of alcohol.

“In addition to cosmetics and private-label goods, we plan to diversify our lineup to broaden the business,” said Jin Young-ho, BGF Retail’s head of product and overseas business.

Health supplements and promotional notices are displayed at the checkout counter of a GS25 store in Jung District, central Seoul, on Aug. 21. [NOH YU-RIM]

Hangover cures and cosmetics

The convenience store industry is focusing on beauty and health supplements. Beauty and health supplements are expected to expand quickly in the second half.

GS25 introduced health supplements to select stores in July and will add special health and beauty shelves at 500 outlets starting in September. The company said supplement sales in the third week of August jumped 87.9 percent from the previous week.

Next month, it will partner with Korean pharmaceutical firms to sell 30 supplements and about 40 other health-related products, including hangover cures.

CU, which launched 11 supplements earlier this year, will expand that lineup to 30 by the second year.

“Next month, we will roll out supplements for smokers and stress relief, targeting consumers of lifestyle products,” said a CU product manager.

Cosmetics and clothing are also appearing in more outlets. The three major convenience store chains are focusing on areas without beauty retailers.

“In stores without Olive Young or Daiso nearby, sales of beauty products are rising,” a beauty product manager at CU said. “We aim to expand beauty-focused stores from 210 to about 600 by the end of this year.”

Store owners are optimistic. Hong Sun-kyung, who runs a CU in Geumcheon District, southern Seoul, said, “Convenience stores are more accessible than beauty shops and open longer hours, so they will have a sales advantage.”

BGF Retail, the operator of CU convenience stores, showcased its instant brewed coffee brand “GET" along with pairing desserts at its second-half product convention in Gangnam District, southern Seoul, on Aug. 19. [BGF RETAIL]

Chains are also offering services tailored to younger shoppers. CU will expand the delivery of its in-house GET coffee brand to all stores nationwide in the second half. To compete with coffee franchises, it will also launch new desserts.

“We are testing in parts of the Chungcheong region, and starting next month, delivery will be available at 7,000 stores nationwide,” a CU official said. “With similar quality but competitive pricing, we expect to challenge coffee franchises.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]