CU Ultra-Low Price Increase: Americano 990 Won, Ice Cream 800 Won
CU Convenience Stores Expand Ultra-Low-Cost Product Line Amid Inflation
Table of Contents
- CU Convenience Stores Expand Ultra-Low-Cost Product Line Amid Inflation
- CU Convenience Stores’ Ultra-Low-Cost Expansion: Your Questions Answered
- What is CU Convenience Stores Doing?
- Why is CU Expanding its Low-Cost Product Line?
- How Popular Are Budget-Pleasant Items at CU?
- What Are Some of the Popular Low-Cost Items at CU?
- What New Ultra-Low-Cost Products Has CU Introduced?
- What summer Season Specials is CU Offering?
- Are There Any Discounted Ice Cream Options?
- What is a “PB” item?
- How Does CU’s Executive View the Expansion of Low-Cost Products?
- Key Takeaways: A Swift Comparison
SEOUL — responding to increased price sensitivity among consumers, CU, a major convenience store chain, announced plans on May 8 to significantly expand its offerings of ultra-low-cost products priced below 1,000 won.
Rising Popularity of Budget-pleasant Options
teh move comes as CU has seen a steady increase in sales of its budget-friendly items. Sales of products priced under 1,000 won jumped 29.8% year-over-year in 2023, marking a three-year high. Popular items include 880 won cup ramen, with 1.55 million units sold; 990 won snacks, with 1.3 million units sold; and 990 won beverages, with over 4 million units sold. The 990 won hot bar has sold 480,000 units.
New Ultra-Low-Cost Products
Building on this trend, CU has already introduced several ultra-low-cost products, including 990 won triangle gimbap and various private-brand (PB) items also priced at 990 won. The 990 won hot bar, launched in March, sold 500,000 units within a month.
Summer Season Specials
CU plans to introduce a range of super-special products,focusing on items with high customer demand during the summer season.This includes offering Americano iced coffee (black and sweet varieties) for 990 won, including a free ice cup. Additionally, recognizing the increasing popularity of convenience store ice purchases, CU will offer a 3.3kg bag of ice for 3,990 won. According to CU, this is the lowest price per kilogram for bagged ice sold offline in the domestic distribution industry.
Discounted Ice Cream
Further expanding its low-price offerings, CU will also release mortgage ice cream bars (orange and green grape flavors) priced at 800 won each. This represents a discount of up to 70% compared to existing mortgage ice cream products.
Executive Viewpoint
Yoo Sun-woong, head of the BGF Retail products Division, stated, “As price increases on major products continue from the beginning of the year, more customers are pursuing budget consumption.” He added, “accordingly, this trend will greatly increase PB items and continue to introduce cheaper products at 10 won and 100 won to contribute to price stability.”
CU Convenience Stores’ Ultra-Low-Cost Expansion: Your Questions Answered
What is CU Convenience Stores Doing?
CU, a major convenience store chain, is significantly expanding its offerings of ultra-low-cost products, priced below 1,000 won. this move is in response to the increased price sensitivity of consumers. The declaration was made on may 8th.
Why is CU Expanding its Low-Cost Product Line?
CU is responding to increased price sensitivity among consumers. This means shoppers are becoming more focused on finding affordable options due to factors like inflation impacting the cost of goods.
How Popular Are Budget-Pleasant Items at CU?
CU has seen a steady increase in sales of its budget-friendly items. Sales of products priced under 1,000 won jumped 29.8% year-over-year in 2023, reaching a three-year high.
What Are Some of the Popular Low-Cost Items at CU?
Popular items include:
880 won cup ramen (1.55 million units sold)
990 won snacks (1.3 million units sold)
990 won beverages (over 4 million units sold)
990 won hot bar (480,000 units sold)
What New Ultra-Low-Cost Products Has CU Introduced?
CU has already introduced several ultra-low-cost products, including:
990 won triangle gimbap
Various private-brand (PB) items also priced at 990 won
The 990 won hot bar, launched in March, sold 500,000 units within a month, indicating strong consumer interest.
What summer Season Specials is CU Offering?
CU plans to introduce special products focusing on items with high customer demand during the summer, including:
990 won Americano iced coffee (black and sweet varieties) including a free ice cup.
3.3kg bag of ice for 3,990 won (claimed to be the lowest price per kilogram for bagged ice sold offline in the domestic distribution industry).
Are There Any Discounted Ice Cream Options?
Yes,CU will release mortgage ice cream bars (orange and green grape flavors) priced at 800 won each. This represents a discount of up to 70% compared to existing mortgage ice cream products.
What is a “PB” item?
“PB” stands for “private-brand.” These are products that are manufactured and sold under the CU brand, offering customers often lower prices than branded items.
How Does CU’s Executive View the Expansion of Low-Cost Products?
Yoo Sun-woong, head of the BGF Retail products Division, stated that “As price increases on major products continue from the beginning of the year, more customers are pursuing budget consumption.” He added, “accordingly, this trend will greatly increase PB items and continue to introduce cheaper products at 10 won and 100 won to contribute to price stability.”
Key Takeaways: A Swift Comparison
| Feature | details |
| ———————– | ———————————————————————– |
| Core Strategy | expanding ultra-low-cost product offerings (under 1,000 won) |
| Target Audience | Price-sensitive consumers |
| Key Products | Cup ramen, snacks, beverages, hot bar, gimbap, iced coffee, ice, ice cream |
| Price Point | Primarily under 1,000 won, with select items at 800 won and 3,990 won |
| Motivation | Responding to inflation and increased demand for budget-friendly options |
| Executive Stance | Focused on strengthening PB items and offering cheaper options |