GS Retail said on the 6th that its third-quarter results came to 3.2054 trillion won in revenue and 111.1 billion won in operating profit. Compared with a year earlier, revenue rose 5.3% and operating profit increased 31.6%.
The convenience store (GS25) institutional sector posted 2.4485 trillion won in revenue and 85.1 billion won in operating profit in the third quarter. Compared with a year earlier, revenue rose 6.1% and operating profit increased 16.7%.
GS25, through a revenue-focused strategy of opening high-quality stores, saw sales at newly opened locations this year outperform the chainwide average. For existing stores, sales rose 4.4% thanks to scrap-and-build efforts (expanding store size or relocating to better sites) and the success of differentiated products. Also, differentiated products such as ▲ Seoul Milk desserts ▲ collaboration items with Kedehun ▲ Anh Sung-jae highball ▲ Eolbaksah ▲ Hyejaroun ready-meal series drove performance improvement.
The supermarket (GS The Fresh) institutional sector recorded 459.4 billion won in revenue and 9.2 billion won in operating profit. Compared with a year earlier, revenue increased 8.5%, but operating profit fell 33.8%.
Industry watchers said it helped that the company uniquely built cooperation frameworks with all three major delivery apps, strengthening its quick-commerce competitiveness. However, profitability deteriorated as expense outlays increased.
The home shopping (GS Shop) institutional sector posted 247.5 billion won in revenue and 11.6 billion won in operating profit. Compared with a year earlier, revenue and operating profit fell 1.4% and 37.6%, respectively. The downturn reflects worsening market conditions, including a decline in TV viewership.
A GS Retail official said, "Strengthening sound management through efficiencies in the core business structure is leading to visible results," and added, "We will strengthen customer-centric products and services, focus on building fundamentals, and devote ourselves to sustainable business growth."