Emart24 Announces 'Win-Win Initiative' to Boost Franchisee Profits
Emart24 Announces 'Win-Win Initiative' to Boost Franchisee Profits
Emart24 has launched a 'Win-Win Initiative' designed to improve the profitability of its franchisees and foster mutual growth, setting a potential benchmark for the convenience store industry. The initiative was announced on October 30, 2025, at 2 PM at Emart24 headquarters in Seongsu-dong, Seoul, with Emart24 executives and representatives from the Franchisee Association in attendance. The 'Win-Win Initiative' is seen as Emart24's commitment to alleviating the challenges faced by franchisees in a difficult economic climate and strengthening long-term partnerships. It is particularly significant because it focuses on improving the profitability of lower-performing stores through practical support measures. Emart24 stated that it plans to further strengthen trust with its franchisees through this initiative and create a convenience store franchise model that promotes shared growth. The Emart24 initiative is expected to have a positive impact across the convenience store sector, highlighting the importance of mutually beneficial business practices for other franchise companies.
A key element of the 'Win-Win Initiative' is offering franchisees with individually leased stores, who have faithfully adhered to their franchise agreements, the opportunity to switch to a 'royalty-based' system during their contract term. Moving away from the existing fixed-fee structure, the royalty system distributes profits based on gross profit margin, designed to reduce revenue volatility for franchisees and encourage a greater focus on increasing sales. Specifically, the royalty system allocates 71% of gross profit to the franchisee and 29% to the headquarters. This is expected to provide significant economic assistance to franchisees by allocating more of the profits to them, while also further strengthening the cooperative relationship with the headquarters. Emart24 anticipates that the switch to the royalty system will increase franchisee satisfaction and ensure greater stability in store operations in the long term. Furthermore, this shift to a royalty-based system could serve as an example of a new profit-sharing model for other convenience store franchises.
Emart24 announced plans to launch 600 trendy and competitive flagship products by 2026 to enhance its product competitiveness. This is part of a strategy to meet rapidly changing consumer trends and contribute to increased sales for franchisees. Emart24 will focus on developing differentiated products that are popular, particularly among younger generations, and improving the quality of existing products to increase customer satisfaction. In addition, Emart24 plans to actively solicit feedback from franchisees during the product development process to ensure that products reflect real-world insights. This is expected to help franchisees understand customer preferences and sell products more effectively. Emart24's efforts to strengthen its product competitiveness are expected to secure a differentiated competitive edge in the convenience store market and provide customers with a wider range of choices. This investment is ultimately expected to enhance Emart24's brand value and positively impact franchisee profits.
Meanwhile, in other retail news, Lotte Department Store is set to unveil its Christmas decorations on October 31, featuring a 'Sweet Holiday' theme. This is interpreted as a strategy to provide customers with a special experience ahead of the year-end holiday season and enhance the shopping atmosphere. Lotte Department Store plans to decorate the interior and exterior of the department store with dazzling lights and decorations to give customers an early taste of the Christmas spirit. In particular, various events and promotions for families will be prepared to encourage customer participation. Lotte Department Store's Christmas decorations are expected to bring joy to customers visiting the department store, stimulate consumer spending, and contribute to increased sales. This year-end marketing is expected to be actively pursued throughout the retail industry, with each department store competing to attract customers with differentiated concepts and strategies. Lotte Department Store's 'Sweet Holiday' theme is expected to create a warm and happy year-end atmosphere for customers and contribute to building a positive brand image.
