North American customers are GS25’s fastest-growing foreign customer group and the second-largest by sales, after customers from Greater China. In the first eight months of this year, sales to North American customers rose 131% compared with the same period last year, the largest increase among foreign customer groups by region. North American customers accounted for a record-high share of about 30% of sales to foreign customers.

Background and context

The North American customer share is 10 percentage points lower than the share for customers from Greater China, at about 40%. These figures show the two groups’ relative shares of sales to foreign customers. However, sales share and sales growth are different measures. The 131% increase refers to the year-over-year change in sales to North American customers, not the sales amount itself or their share of sales to foreign customers.

The two customer groups also showed different purchasing preferences. North American customers favored canned beer, wine and spirits, as well as sports drinks, energy drinks and carbonated drinks, and spent more on canned beer than other foreign customer groups. Customers from Greater China favored dairy products, noodles and confectionery. GS25’s most popular product also changed from banana milk to blueberry Greek yogurt.

Regional trends also differed. Sales to North American customers in Gangwon Province rose 338% this year and were concentrated in beach areas along the east coast. By contrast, customers from Greater China were reported to mainly visit tourist destinations and urban shopping areas in Jeju Island, Seoul and Busan. This shows that foreign customers do not all follow one consumption pattern; trends vary by customer group and region.

A company representative said foreign tourists’ spending is expanding beyond a pattern concentrated among particular countries and regions to include a wider range of nationalities and areas. The reported growth among North American customers and regional differences can be viewed alongside that explanation. However, these trends alone do not establish how tourist spending will change in the future or whether sales of particular products will continue to rise.

What this news means

One notable point in the data released by GS25 is that foreign customer groups differ not only in their share of sales but also in the products they buy and the areas they visit. North American customers account for a smaller share than customers from Greater China, but their growth rate was the highest, and sales in Gangwon Province also rose sharply. These differences may point to the need to consider regional customer profiles and product demand when operating convenience stores. However, the company did not say that these consumption patterns directly informed its store operations plans.

GS25 said it plans to adjust stores, products and marketing to reflect increases in foreign customers in particular areas. This does not mean that adjustments have already been made at every store; it is a plan to respond to customer trends in each region going forward. This year, the company introduced English promotional materials and instructions on cooking and serving products at about 1,000 stores frequently visited by foreign tourists.

However, this does not mean the materials and instructions have been installed at every GS25 store, nor has it been confirmed that North American customers’ preferred products have been added to the product range at stores in every region.

What is confirmed and what is still unknown

Confirmed facts

  • Sales to North American customers at GS25 rose 131% in the first eight months of this year compared with the same period last year.
  • North American customers reportedly accounted for about 30% of sales to foreign customers, while customers from Greater China accounted for about 40%.
  • Sales to North American customers in Gangwon Province rose 338% this year and were concentrated in beach areas along the east coast.
  • English promotional materials and cooking and serving instructions were introduced at about 1,000 stores frequently visited by foreign tourists.
  • GS25 plans to adjust stores, products and marketing to reflect increases in foreign customers in particular areas.

What is still unknown

  • The published information did not provide the actual sales amount for North American customers.
  • It has not been confirmed which countries North American customers mentioned in the article are from.
  • No specific methodology was provided for calculating the regional shares of sales to foreign customers.
  • It is not yet known how stores, products and marketing will be adjusted in each region or which stores will implement the changes.

What readers should check

  • When looking at GS25’s sales to foreign customers, distinguish between growth rates and sales shares. The 131% figure is the increase compared with the same period last year, while about 30% is the North American customer share of sales to foreign customers.
  • Even at stores frequently visited by foreign tourists, the availability of English promotional materials and cooking and serving instructions may vary by location. It is best to check in person whether the information you need is available.
  • When considering future store experiences or product selections, distinguish between the company’s stated “plan to adjust” and changes actually implemented at stores.