Leading convenience operators including CU, GS25 and 7-Eleven will give careful consideration as to the sites of new store locations as heightened competition in the space threatens South Korea’s numerous franchisees.
The agreement states that, in future, rival banners must be at least 50 metres apart. At present, stores under the same banner must be sited at least 250 metres apart to guard against cannibalisation. It comes as South Korea’s government had been pressing the industry to adopt a voluntary code to deal with increasing market saturation in the sector.
Source: Inside Retail Asia