Tourist wallets power Korea’s convenience store growth

CU sees foreign sales in Seongsu more than double as banana milk becomes must-buy

Foreign tourists are becoming an increasingly important source of growth for Korea’s convenience stores, with spending surging fastest in Seoul’s trendsetting Seongsu district.

Foreign-card sales at CU stores in Seongsu jumped 115.1 percent on-year in the first half, according to data provided to The Korea Herald by BGF Retail, operator of Korea’s largest convenience store chain by outlet count.

That far outpaced growth of 35.3 percent in Myeong-dong and 32.5 percent in Hongdae, Seoul’s other major tourist districts. Myeong-dong still generated the largest sales volume, followed by Hongdae, while Seongsu’s smaller foreign customer base allowed for steeper percentage growth, BGF Retail said.

What visitors bought also reflected the character of each district.

Myeong-dong was the only place where a travel card ranked among the five best-selling products. The transit pass, which offers discounts at shops, cultural sites and tourist attractions, reflects the district’s role as a central Seoul hub for transportation, shopping and currency exchange.

Hongdae and Seongsu, meanwhile, shared another social media favorite: CU’s Grabmeal Chocolate Protein Shake. The meal-replacement drink ranked third in Hongdae and fourth in Seongsu.

“CU’s Grabmeal series has been introduced across Taiwan, China and other Asian markets on social media as a must-buy item from Korean convenience stores,” a BGF Retail official said.

Seongsu’s top five also included an album by K-pop group Cortis. Sold at only five CU stores nationwide, including CU New Seongsu Premier, each album came with a photocard.

Banana milk becomes Korea’s ‘welcome drink’

Sales of Binggrae’s banana-flavored milk at CU’s Incheon Airport stores rose 43.1 percent between January and Aug. 17, while sales of Tmoney Travel Cards soared 831.7 percent.

The drink’s popularity has been fueled by social media videos showing foreign visitors buying banana milk, Americano coffee and ice immediately after arriving at the airport to make banana milk lattes.

At nine CU stores near the arrival halls of Incheon International Airport, the best-selling product over the period was the Tmoney Travel Card, followed by banana-flavored milk, bottled water, Dubai-style chewy cookies and adapters for use in Korea.

At 10 CU stores near the departure halls, banana-flavored milk ranked first, followed by bottled water, Dubai-style chewy cookies, strawberry-flavored milk and Orion’s Bichobi biscuits.

Banana-flavored milk also ranked among the top two products in Myeong-dong, Hongdae and Seongsu, showing its popularity extends to Seoul’s tourist districts.

“To reach more foreign tourists, we have installed dedicated banana-flavored milk displays at retailers popular with visitors, including convenience stores,” a Binggrae official said.

The stands feature multilingual signage and cards introducing viral coffee recipes using the drink.

GS25 has also increased banana milk inventory more than fivefold at its Incheon Airport stores. One of its four airport locations sells an average of 1,200 bottles a day, with some Chinese tourists buying more than 30 at a time in insulated bags.

The district-level gains reflect a broader surge in foreign spending at convenience stores. Foreign sales across CU’s nationwide network jumped 60.1 percent on-year in the second quarter, while GS25 recorded a 67.2 percent increase.

“The competition for the convenience store sales lead is shifting from a fight over store count to a fight for foreign customers’ wallets,” an industry official said.

Korea welcomed 10.71 million foreign visitors in the first half, up 21.3 percent from a year earlier, and first-time arrivals surpassed 10 million during the period. Foreign credit card spending exceeded 10 trillion won.

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