Gs Retail Co.,Ltd (007070)

**Business Overview** GS Retail is a leading comprehensive retail company in South Korea, operating various online and offline distribution channels such as the convenience store 'GS25', the supermarket 'GS THE FRESH', and the home shopping network 'GS SHOP'. Its core products and services include groceries, daily necessities, convenience foods, delivery, and financial services. The company offers differentiated products through its private label brand 'YOU US' and IP collaboration products. Furthermore, it provides quick commerce services through an 'O4O (Online for Offline)' strategy, which organically combines a strong network of approximately 18,000 offline stores nationwide with its online commerce platform. As of 2025, the revenue breakdown is 74.8% from convenience stores, 14.5% from supermarkets, and 8.8% from home shopping. The main customer base for convenience stores is expanding from those in their 20s-30s to those aged 40 and above, while supermarkets primarily target middle-aged women in the Seoul metropolitan area. **Core Competitiveness** GS Retail possesses a strong online and offline distribution network encompassing convenience stores, supermarkets, and home shopping in Korea. Notably, it holds a structural competitive advantage by simultaneously operating convenience stores and supermarkets, integrating logistics and product procurement. Through its 'Woori Dongne GS' app and partnerships with major delivery apps, the company has established a quick commerce network serving approximately 45 million users monthly, leading the market. Additionally, it is strengthening its competitiveness through customer-centric differentiated product and store strategies, including expanding stores specializing in fresh food, developing IP collaboration products, and enhancing store efficiency through a 'scrap-and-build' strategy. **Performance Analysis** GS Retail's revenue grew by 4.5% from KRW 11.0803 trillion in 2023 to KRW 11.5794 trillion in 2024, and further increased by 3.3% to KRW 11.9574 trillion in 2025. Revenue for Q1 2026 was KRW 2.8549 trillion, a 3.4% increase compared to KRW 2.7613 trillion in the same period last year. Operating income decreased from KRW 314.5 billion in 2023 to KRW 256.1 billion in 2024 but showed a recovery, increasing by 14.1% to KRW 292.1 billion in 2025. The operating profit margin for 2025 was 2.44%. Net income significantly increased by 412.2% from KRW 9.8 billion in 2024 to KRW 50.2 billion in 2025, indicating improved profitability. **Financial Soundness** Examining GS Retail's financial soundness, the debt-to-equity ratio increased from 122.45% in 2022 to 138.30% in 2024 but improved to 128.42% in 2025. The current ratio steadily increased from 62.85% in 2022 to 90.08% in 2025, indicating an improving trend in short-term liquidity. Return on Equity (ROE) was low at 0.31% in 2024 but significantly rose to 1.53% in 2025, demonstrating improved efficiency in capital utilization. **Outlook** In line with market trends of increasing single-person households and expanding demand for quick commerce, GS Retail is evolving its convenience stores and supermarkets into lifestyle platforms. It is enhancing store efficiency through a 'scrap-and-build' strategy, which involves closing unprofitable stores and expanding profitable ones, while also strengthening its competitiveness in fresh food and differentiated products. Furthermore, the company is expected to continuously strengthen the competitiveness of its home shopping business by leveraging digital transformation and AI-based content.