June 17, 2019

[EQUITIES] ‘GS Retail may slow down’

PUBLISHED : August 10, 2018 - 11:49

UPDATED : August 10, 2018 - 11:49

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[THE INVESTOR] GS Retail’s growth could slow down next year, said Mirae Asset Daewoo on Aug. 10, lowering the target price to 42,000 won (US$37.35) from 47,000 won while maintaining a “trading buy.”

The minimum wage hike next year will slow down its revenue from convenience stores, as rising burden for store owners and concerns over decline in profits could deter increase in number of branches. The growth rate of existing stores could restore its stock price in the short term, but unease about the possibility of a slowdown would put off meaningful recovery. For the retailer to return to normal, the growth rate of existing outlets should pick up, said analyst Kim Myeong-ju. 

Meanwhile, its second-quarter earnings in convenience store sector were better than expected due to the World Cup in Jun, unusual heat as well as cutting 12 billion won in sales and administrative expenses, the analyst noted.

By Hwang You-mee (

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