Pushing through rows of neatly parked motorcycles to enter the convenience store, a rare duplex structure caught the eye. Upon climbing to the second floor, an atmosphere reminiscent of a fast-food restaurant was palpable. A male student working on an assignment with his laptop and a female student watching YouTube with earphones in were surrounded by a group of university students engaged in discussion. The convenience store, optimized for purchasing simple items, appeared to function as both a dining hall and a study cafe here. This was the scene at "GS25 Nguyen Thai Binh store," located in Ho Chi Minh City, Vietnam, visited at the end of last month.
Leading with an expansion strategy tailored to the lifestyle of Vietnamese consumers, GS25 is aiming squarely for the No. 1 spot in the local convenience store market. Since opening its first store in Ho Chi Minh City in 2018, GS25 has operated 445 stores across Vietnam as of the end of August. It has narrowed the gap with industry leader Circle K (504 stores) to just 59 stores. In March last year, it also entered Hanoi, a northern region of Vietnam.
Behind the rapid store expansion was an effective location strategy that considered local commercial characteristics. In Vietnam, where motorcycles are the primary means of transportation, motorcycle parking space in front of the store is a crucial condition. The GS25 Nguyen Thai Binh store in Ho Chi Minh City reflects such local conditions. A spacious area allowing access from multiple directions has been prepared in front of the two-story store located along a main road. A GS25 official said, "If motorcycles cannot be parked in front of the store, sales drop to half."
Placing tables and chairs so customers can stay in the store for extended periods is a scene unique to this convenience store. The first floor sells products, while the second floor operates as a dining area equipped with tables and chairs. Wi-Fi and power outlets are naturally free. Manager Yi said, "Since many customers eat at the store, a spacious area and free Wi-Fi are essential."
Such specialized stores attract demand with concepts suited to regional characteristics. For example, the GS25 Rivergate store in Ho Chi Minh City, located in a densely populated residential area, focuses on fresh food items such as fruits and processed meats. Huy, the manager of this store, said, "Fresh food accounts for about 7% to 8% of total sales," adding, "Customers carefully check expiration dates, so we must inspect product conditions daily."
The Dien Bien Phu store, a food-specialized outlet, is betting on Korean-style convenience meals. One side of the store displayed instant noodles by type, and next to it was an instant noodle cooking machine, known as "Han River Noodles," allowing customers to boil and eat noodles on the spot. A food station in front of the register sells tteokbokki (spicy rice cakes) and fish cakes.
The Cafe 25 specialized store at Tran Cao Van serves as a study room for university students, similar to the Nguyen Thai Binh store. When asked why he frequently visits GS25, a student attending a nearby university said, "It is good because there is a wide space to study," adding, "Prices are also cheaper compared to other convenience stores."
GS25 plans to expand its presence centered on standard stores with high operational efficiency while simultaneously checking local customer reactions to specialized stores. It has also set a goal to reach the No. 1 position in the Vietnamese convenience store market by number of stores within the next year. Choi Geum-seong, head of GS25's Vietnam subsidiary, said, "Considering intensified market competition and leasing environments, we plan to steadily open 100 to 150 stores annually," adding, "We will focus on operational efficiency and product differentiation."
Efforts to improve profitability are also accelerating. Head Choi stated, "Through cost savings from increased store numbers and strengthened product competitiveness, we aim to turn cumulative EBITDA positive in 2026," revealing, "While expanding stores in existing entry regions, we will actively develop new commercial areas with low convenience store density."
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