BGF Retail faces headwinds in convenience store business as January-March operating profit falls 30% in South Korea

South Korean convenience store giant BGF Retail announced on the 8th that its consolidated financial results for the first quarter of 2025 (January to March) showed sales of 2.165 trillion won, up 3.2% from the same period last year.
(approximately JPY 209.2 billion), operating profit fell 30.7% to 22.6 billion won (approximately JPY 2.3 billion), and net profit fell 42.7% to 13.4 billion won (approximately JPY 1.39 billion), a significant decrease in profits.
The company cited the worsening economic environment both at home and abroad, sluggish consumption, as well as natural disasters such as wildfires and a decrease in the number of business days as reasons for the sudden drop in operating profit.
The company explained that it was unable to absorb the increase in sales, which put a strain on profits. However, it also emphasized its efforts for medium- to long-term growth, saying that it is opening new stores and increasing the proportion of large stores.
The company said that sales have increased since the beginning of the year due to the expansion of private brand (PB) products such as Bakehouse 405 and Tangwajeom, as well as the introduction of low-priced products.
In the second quarter (April to June), BGF Retail is anticipating demand for leisure activities and is working to improve its business competitiveness by strengthening sales of convenience foods, desserts, beverages, and alcoholic beverages.
The government has indicated its intention to do so.