Convenience store CU announced on the 8th that it will strengthen its ultra-low price strategy by continuously launching products priced below 1,000 won as consumers' price sensitivity increases in the era of high inflation.
This year, CU has continuously released ultra-low-priced products, including the industry's lowest price triangular kimbap at 1,000 won, which has been lowered by 10 won to a price of 990 won, and 990 won hot bars that are more than half cheaper than NB products. The 990 won hot bars sold 500,000 units within a month of their launch in March.
This month, CU plans to introduce various ultra-low-priced products focused on product categories with high customer demand for the upcoming summer season to help customers save money. Popular items, such as two types of Americano (black, sweet), will be offered for just 990 won with a free ice cup promotion.
CU will also introduce 3.3 kg bags of ice for 3,990 won. The price per kilogram of this product is currently the lowest among bagged ice products sold in the domestic offline distribution sector.
CU is also expected to launch two types of low-sugar ice cream (orange, green grape flavor) for 800 won. This is up to 70% cheaper compared to the low-sugar ice cream currently being sold.
The products priced below 1,000 won that CU has steadily introduced since last year have become very popular. CU reported that it has achieved total sales of over 7.3 million units, including 1.55 million units of 880 won cup noodles, 1.3 million units of 990 won snacks, 4 million units of 990 won processed milk, and 480,000 units of 990 won vegetables. CU noted that the sales growth rate of products priced below 1,000 won last year reached 29.8%, marking the highest in three years.
Yoo Seon-woong, head of the product division at BGF Retail, said, "As prices of key products have continued to rise since the beginning of the year, we expect the number of customers seeking thriftiness to increase further," and noted, "In line with this trend, we will significantly increase our ultra-low-price private brand (PB) items and continuously introduce products that are cheaper by even 10 won or 100 won to contribute to stabilizing prices."