GS25, GS The Fresh log same-store sales growth

GS Retail posted record quarterly sales and operating profit in the third quarter of this year.

The company disclosed Wednesday that its consolidated operating profit for the third quarter rose 18.9 percent from a year earlier to 132.1 billion won ($98.5 million), based on preliminary figures. Sales climbed 3.4 percent over the same period to 3.31 trillion won. Net profit for the period, however, fell 44.7 percent to 49.9 billion won.

Sales at convenience store chain GS25 rose 1.1 percent year on year to 2.47 trillion won. Same-store daily sales grew 2.3 percent compared with the third quarter of last year — when consumer coupon benefits had boosted results — reaching an all-time high.

The company attributed the growth largely to its fresh-food-focused store format, which expanded to 1,074 locations as of September. Sales of fresh products surged, with vegetables up 66.4 percent and meat up 29.9 percent. Sales to foreign customers jumped 69.4 percent year on year, and quick-commerce revenue — covering delivery and pickup — rose 86.9 percent. Operating profit, however, fell 8.1 percent from a year earlier to 78.2 billion won.

GS The Fresh, the company's corporate supermarket business, posted sales of 527.7 billion won, up 14.9 percent year on year, while operating profit surged 159.8 percent to 23.9 billion won. Both figures were all-time highs for the chain.

GS The Fresh added 27 stores compared with the same period last year, and same-store sales rose 10.7 percent. Quick-commerce revenue at GS The Fresh also grew 52.2 percent, pushing its share of total sales above 10 percent for the first time.

GS Shop, the company's home-shopping arm, recorded sales of 253.2 billion won, up 2.3 percent, while operating profit more than doubled, rising 108.6 percent to 24.2 billion won.

"We have achieved a structural improvement by strengthening competitiveness across each business and broadening our profit base," GS Retail said. "We will continue to grow by reinforcing our core business competitiveness."


soho0902@heraldcorp.com