Korea Seven, which operates the Seven-Eleven convenience store chain, returned to the black for the first time in 11 quarters on the back of store optimization and stronger product competitiveness.
According to Korea Seven on the 14th, operating profit in the second quarter of this year was 4.1 billion won, an improvement of 12.8 billion won from a year earlier. It was the first time since the third quarter of 2023 that quarterly operating profit was in the black. Revenue fell 2.6% on-year to 1.2178 trillion won, affected by a decrease in the number of stores.
Korea Seven said profitability recovered as the business efficiency measures it had pursued took hold in the field and the competitiveness of store operations improved. Product differentiation strategies also contributed to the improved results, including the "Rice Project" to enhance the quality of ready-to-eat meals, expanded introduction of smoothies from Japan's Seven-Eleven, sales of popular overseas desserts, and strengthened collaboration products leveraging intellectual property (IP).
A favorable business environment also helped. The company said weather suitable for outdoor activities, increased domestic travel demand due to the strong dollar, and more foreign tourists had a positive impact on demand for convenience store use.
Korea Seven plans to raise per-store profitability by upgrading store environments through investment and operational improvements at existing outlets, while pursuing selective new openings focused on integrating commercial zones and prime locations.
A Korea Seven official said, "The results of our focus through last year on building a foundation to enhance business stability and brand competitiveness showed up in the second quarter," adding, "We will maintain the momentum of improved results based on stronger franchise competitiveness and product planning (MD) innovation."