From July 1 to 5, when the entire country was affected by monsoon rains, the average daily sales through quick-commerce apps like Our Neighborhood GS increased by 49.4% compared to the sunnier days of June. (Image courtesy of GS Retail)
SEOUL, Jul. 8 (Korea Bizwire) – As sweltering heat and monsoon rains intensify, convenience stores and supermarkets in South Korea are turning to home delivery services to capture customers reluctant to venture out in inclement weather.
Convenience stores and corporate supermarkets, known for their proximity to residential areas — so close that Koreans joke about going in their slippers — are now expanding their reach beyond their traditional “slipper zone” clientele.
GS Retail, a major player in the convenience store market, has been quick to capitalize on this trend.
According to the company’s analysis, from July 1 to 5, when the entire country was affected by monsoon rains, the average daily sales through quick-commerce apps like Our Neighborhood GS increased by 49.4% compared to the sunnier days of June.
GS25 convenience stores saw a 43.8% increase in sales, while GS The Fresh supermarkets experienced a 54.1% surge.
The most significant sales growth for GS25 during the rainy season was in ingredients for Korean pancakes, with cooking oil sales skyrocketing by 452.5%, small portions of vegetables by 347.1%, and flour by 339%. Umbrella sales also saw a dramatic increase of 308.9%.
“When sudden rain hits, customers are opting for the convenience of ordering umbrellas through quick-commerce, which can be delivered within an hour, rather than visiting the store in person,” a GS25 representative explained.
GS The Fresh supermarkets noted an increase in “home meal” demand during bad weather, with orders for domestic fruits up by 122.5%, grains by 86.1%, and eggs by 85%. Dehumidifying products also saw a significant 84.2% increase in delivery orders.
Lotte Super is taking a different approach by offering free delivery for “heavy items” regardless of the purchase amount from July 1 to August 31. (Image courtesy of Lotte Super)
Lotte Super is taking a different approach by offering free delivery for “heavy items” regardless of the purchase amount from July 1 to August 31.
This includes watermelons, rice (4kg or more), toilet paper (24 rolls or more), laundry detergent (3kg), and bottled water multipacks. The service is available within a 500-meter radius of their stores.
Lotte Super reported that last year’s summer free delivery initiative resulted in a 5% increase in both sales and customer numbers compared to the previous year.
This shift in strategy marks a departure from the traditional focus on attracting customers to physical stores through services like discounted parcel delivery or specialized products.
The new delivery-focused approach aims to expand the market by catering to customers who are unable or unwilling to visit stores in person.
The extensive network of physical stores also proves advantageous for expanding delivery services at a lower cost. GS25 and GS The Fresh, with over 18,000 stores nationwide, effectively use their stores as distribution centers, significantly reducing delivery costs.
The retail industry expects this enhanced delivery strategy to help manage the “weather variable” that significantly impacts offline store sales. Convenience stores and supermarkets typically see a decline in sales during the rainy season and cold winters, and delivery services are seen as a way to overcome these seasonal challenges.
The strategy is further bolstered by higher average order values for delivery purchases (18,000 won for GS25 in July) compared to in-store purchases (7,000 won), with one delivery customer generating the equivalent sales of 2.5 offline customers.
Ashley Song (ashley@koreabizwire.com)
