Corporate Logo(source: gsretail.com)
IBK Investment & Securities said on September 19 that GS Retail (007070) is expected to return to growth in the third quarter, supported by government-issued consumer coupons and store consolidation efforts that should improve profitability. The brokerage maintained a “buy” rating and a target price of 21,000 won.
According to analyst Sung-hyun Nam, GS Retail’s consolidated third-quarter earnings are projected at 3.1476 trillion won in revenue and 89.4 billion won in operating profit, up 3.0% and 10.9% year-on-year, respectively.
Nam explained, “Profitability will be supported by the effect of consumer coupon distribution, the closure of unprofitable stores, seasonal demand, a favorable base effect from weak customer traffic last year, and a net increase in store count, which will enhance the impact of new store openings compared to the first half.”
He added, “While the first half saw a net decrease in stores due to closures, the third quarter has seen a modest net increase in store numbers.”
However, Nam cautioned that the supermarket and home shopping divisions are likely to remain sluggish. “Supermarkets have a relatively low franchise ratio, meaning many outlets were excluded from coupon usage. Meanwhile, worsening economic conditions are causing continued declines in home shopping transaction volume,” he said.
*[KOSPI] GS Retail(007070) operates convenience stores(GS25), supermarkets(GS THE FRESH), and home shopping(GS SHOP), while also engaging in real estate development. In July 2021, it merged with GS Home Shopping to adapt to digital transformation and evolving consumer behavior. Market capitalization is 1.17trillion won (as of September 18, 2025, closing price).
Corporate Logo(source: gsretail.com)
IBK Investment & Securities said on September 19 that GS Retail (007070) is expected to return to growth in the third quarter, supported by government-issued consumer coupons and store consolidation efforts that should improve profitability. The brokerage maintained a “buy” rating and a target price of 21,000 won.
According to analyst Sung-hyun Nam, GS Retail’s consolidated third-quarter earnings are projected at 3.1476 trillion won in revenue and 89.4 billion won in operating profit, up 3.0% and 10.9% year-on-year, respectively.
Nam explained, “Profitability will be supported by the effect of consumer coupon distribution, the closure of unprofitable stores, seasonal demand, a favorable base effect from weak customer traffic last year, and a net increase in store count, which will enhance the impact of new store openings compared to the first half.”
He added, “While the first half saw a net decrease in stores due to closures, the third quarter has seen a modest net increase in store numbers.”
However, Nam cautioned that the supermarket and home shopping divisions are likely to remain sluggish. “Supermarkets have a relatively low franchise ratio, meaning many outlets were excluded from coupon usage. Meanwhile, worsening economic conditions are causing continued declines in home shopping transaction volume,” he said.
*[KOSPI] GS Retail(007070) operates convenience stores(GS25), supermarkets(GS THE FRESH), and home shopping(GS SHOP), while also engaging in real estate development. In July 2021, it merged with GS Home Shopping to adapt to digital transformation and evolving consumer behavior. Market capitalization is 1.17trillion won (as of September 18, 2025, closing price).