The boundaries between offline retail channels and e-commerce and delivery platforms are blurring, reshaping the online grocery shopping landscape. Major supermarkets, which previously focused on building their own delivery infrastructure and enhancing their apps, are now entering partnerships with delivery platforms and large e-commerce channels, embracing a spirit of collaboration with former competitors. The combination of traditional retailers with offline bases and logistics capabilities and platforms with significant traffic is expanding across quick commerce and early morning delivery sectors.
According to industry sources, Lotte Super has recently partnered with the delivery platform Coupang Eats to launch quick commerce services at 170 of its 310 stores nationwide. After discontinuing its 'one-hour delivery' service in 2020, Lotte Super is re-entering the local instant delivery market by leveraging an external platform for the first time in three years and seven months. The service aims to deliver over 3,000 items, including fresh produce, processed foods, and household goods, within an hour using its network of stores located close to residential areas.
As a result, Lotte Super, GS The Fresh, E-Mart Everyday, and Homeplus Express, four major supermarket chains, have all joined the Coupang Eats grocery and shopping categories. Notably, GS The Fresh and E-Mart Everyday are diversifying their delivery networks across major platforms such as Baedal Minjok, Yogiyo, and Naver Shopping to increase quick commerce volumes.
In the department store sector, Lotte Department Store has established a dedicated section within Coupang Eats at its Cheongnyangni and Gwanak locations to pilot instant delivery for food items from its food court. This marks the first time a department store has utilized an external delivery app infrastructure to provide delivery services. The strategy involves assessing food delivery demand and customer responses over a five-month period before finalizing the service scope.
E-Mart is promoting one-hour delivery of store products through its affiliate SSG.com’s 'Baro Quick' while also utilizing external delivery app infrastructure. The average daily order volume for SSG.com’s Baro Quick has surged nearly sevenfold in a year, demonstrating the growth potential of quick commerce based on offline stores. The four major convenience store chains (CU, GS25, E-Mart 24, and 7-Eleven) have also established a 24-hour quick commerce operation system based on partnerships with delivery apps.
This collaborative approach is extending beyond quick commerce into the early morning delivery market. Oasis Market recently launched a dedicated section on the fintech platform Toss’s 'Toss Shopping.' This is the first time Oasis Market has introduced a dedicated section on an external platform. By leveraging Toss’s monthly active user base of approximately 9 million, Oasis aims to attract new customers while minimizing additional costs by utilizing its existing direct procurement logistics network for deliveries.
Kurly has also maintained its partnership with Naver since their collaboration began in April last year. Kurly has opened 'Kurly N Mart' within Naver Plus Store, showcasing fresh produce, ready-to-eat meals, and household goods available on the Kurly app. The combination of Naver’s search and payment convenience with Kurly’s proven product quality has resulted in a tenfold increase in transaction volume within a year of their integration.
The retail industry’s willingness to partner with previously rival platforms is driven by cost efficiency and customer accessibility. By reducing the opportunity costs associated with building and maintaining their own apps or infrastructure, retailers can tap into large platforms that consumers already frequently use, making it more profitable to absorb grocery shopping demand.
Seoyong Gu, a professor of business administration at Sookmyung Women’s University, stated, "The key is the collaboration with competitors that prioritizes consumer convenience. Offline retailers that struggle to establish their own delivery networks or platforms can implement omnichannel strategies and maximize exposure through partnerships, while platforms can maintain traffic by expanding product choices."
Regarding the collaboration between Toss and Oasis, he noted, "This can be seen as an attempt to absorb non-overlapping customer bases to grow the overall market. The alliance between retail and platforms, where each fills in their respective gaps, is expected to accelerate further in the future."
* This article has been translated by AI.
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