South Korean convenience store chains CU and GS25 expanded their combined market share from 66.7% in 2024 to 68.9% in 2025, while lower-tier competitors Seven-Eleven and Emart24 saw their combined share decline from 33.3% to 31.1% during the same period, according to data from the Ministry of Trade, Industry and Energy reported July 7. The divergence resulted from store closures by underperforming operators, with Seven-Eleven reducing its store count by 1,112 locations and Emart24 closing 620 stores between 2024 and 2025. NICE Credit Rating responded to the market shift by downgrading Korea Seven's credit outlook from 'stable' to 'negative' while maintaining its 'A' long-term credit rating, citing reduced store counts, declining sales, and deteriorating financial stability. The rating action occurred as the total store count across the four major chains decreased by 1,586 locations from 54,852 in 2024 to 53,266 in 2025. The convenience store sector has experienced 11 consecutive months of sales growth from July of last year through May of this year, creating a backdrop of overall industry expansion despite the widening competitive gap.
CU and GS25 Gain Market Share as Competitors Close Stores
BGF Retail's CU increased its store count from 18,458 in 2024 to 18,711 in 2025, adding 253 locations. GS Retail's GS25 decreased from 18,112 stores to 18,005 stores, a reduction of 107 locations. Seven-Eleven's store count declined from 12,152 to 11,040, while Emart24 reduced its presence from 6,130 stores to 5,510 stores. The combined store count of the four major chains fell from 54,852 to 53,266 between 2024 and 2025. Kyobo Securities estimated that the total convenience store count increased by 110 stores in May of this year compared to the end of the previous year, reflecting the industry's overall growth trend.
NICE Credit Rating Downgrades Korea Seven Outlook to Negative
NICE Credit Rating maintained Korea Seven's long-term credit rating at 'A' while changing the rating outlook from 'stable' to 'negative.' The agency stated the adjustment reflected store closures of underperforming locations, decreases in store count and sales, and deteriorating financial stability. NICE Credit Rating analyzed that the convenience store industry would continue experiencing slowed growth as companies adjust their store opening pace and pursue profitability-focused strategies.
Industry Analysts Cite Strengthening Market Dominance by Top Chains
NICE Credit Rating assessed that top-tier convenience store operators would continue securing business competitiveness through fresh food offerings and trend-focused new product launches, while lower-tier operators would face difficulties achieving meaningful performance improvements in the short term. Lee Su-min, head of Corporate Rating Division 3, stated that "the market dominance of top-tier operators in the convenience store sector is expected to strengthen further."
FAQ
How much did Seven-Eleven's store count decrease between 2024 and 2025?
Seven-Eleven reduced its store count by 1,112 locations, declining from 12,152 stores in 2024 to 11,040 stores in 2025.
What credit rating action did NICE Credit Rating take on Korea Seven?
NICE Credit Rating maintained Korea Seven's long-term credit rating at 'A' while downgrading the rating outlook from 'stable' to 'negative,' citing store closures, declining sales, and deteriorating financial stability.
