Corporate supermarkets (SSM), which have been experiencing prolonged declines, are showing signs of recovery. Following an increase in overall sales in August, major companies reported double-digit growth in fresh produce and quick commerce sales in September, indicating a resurgence in local shopping demand.
According to industry reports, from September 1 to 27, GS The Fresh saw a 35% increase in fruit sales, 25.2% in meat, 20% in vegetables, and 13% in seafood compared to the same period last year. Emart Everyday also reported a 15.3% increase in overall food sales and a 22.6% rise in fresh produce during the same timeframe.
During this period, Lotte Super's total food sales rose by 5.1%, with fresh produce sales increasing by 11%. Even when adjusting for the timing of the Chuseok holiday, sales from September 1 to 27 showed a 0.5% increase compared to the same period last year, with food and fresh produce sales up by 1.5% and 1.7%, respectively.
Online shopping for SSMs is also on the rise. From September 1 to 22, GS The Fresh's quick commerce sales increased by 45.5% year-on-year, while Emart Everyday saw a 24.3% growth from September 1 to 27. Lotte Super began offering quick commerce through Coupang Eats in August, currently averaging about 20 orders per day at operating stores.
After a challenging first half of the year, the SSM sector signaled a turnaround in August. According to the Ministry of Trade, Industry and Energy, overall SSM sales rose by 5.0% in August compared to the same month last year, marking the first positive growth after eight consecutive months of decline from December to July. The first half of this year saw a 6.6% decrease, with declines of 10.8% in June and 2.9% in July. The increase in August was driven by a 10.1% rise in agricultural and livestock product sales.
Some companies are also seeing improvements in sales at existing stores. Emart Everyday's same-store sales growth increased from 6.1% in the first quarter to 10.6% in the second quarter, reaching 12.5% in July and 16.6% in August. GS The Fresh reported a 6.2% increase in same-store sales from January to July compared to the previous year.
GS The Fresh is rapidly expanding its store network through franchise growth. The number of stores increased from 319 in 2019 to 585 last year, and 603 as of August this year. During the same period, the number of franchises grew from 142 to 500, while company-owned stores decreased from 177 to 103. Currently, about 83% of all stores are franchises. This expanded network is being utilized not only for offline sales but also as hubs for local deliveries.
Industry experts believe that the base effect from last year's consumer recovery coupons has also influenced this year's SSM sales growth. These coupons were designed for use in traditional markets and neighborhood stores, not in large supermarkets or SSMs.
The simultaneous improvement in same-store sales, fresh produce, and quick commerce is noteworthy for the industry. An industry insider stated, “Considering the Chuseok holiday and last year's base effect, the growth of major companies in same-store sales, fresh produce, and quick commerce is positive. The key question will be whether this growth continues into the fourth quarter, as the holiday and base effects diminish.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.