Shinsegae Fresh Food Q2 Online Sales
5060 Age Group Accounts for 53%
[Asia Economy Reporter Cha Min-young] Customers in their 50s and 60s have emerged as major players in smart shopping at department stores.
According to Shinsegae Department Store on the 12th, online sales in the fresh food category in the second quarter of this year increased by 207.2% compared to the previous year. Among them, the sales proportion of customers in their 50s and 60s was 53.0%, more than four times higher than that of the 20s and 30s generation (12.0%).
The barcode scan shopping service "Smart Corner," which Shinsegae Department Store has been piloting since last year, is especially popular among customers in their 50s and 60s. This is a convenient shopping service introduced in the food halls of major stores such as the main branch and Gangnam branch. Without needing to put heavy items like rice or bottled water into a cart, customers simply take the barcode from the Smart Corner and bring it to the cashier for immediate payment. Purchased items are delivered through Shinsegae Department Store’s short-distance delivery service or loaded directly into parked vehicles. Recently, with the spread of COVID-19, the desire of customers in their 50s and 60s to avoid staying long in stores has increased, leading to about a 30% rise in users in the second quarter alone.
Use of the "Magic Pickup" service, where customers pay through the online mall SSG.com and pick up products at the department store, is also increasing among the 50s and 60s generation. In fact, looking at the overall Magic Pickup performance for the second quarter across all categories, the sales growth rate of customers in their 50s and 60s approached 90%. It is analyzed that more customers are using Magic Pickup services according to their personal schedules for attending department store academy lectures or choosing the option with more benefits regardless of online or offline distinction.
Riding this trend, Shinsegae is hosting the "Shinsegae SSGCon Week" on SSG.com until the 19th, aiming to attract both online and offline customers. This service allows customers to prepay for items in desired categories such as restaurants, ready-to-eat foods, and sportswear at up to 20% discounted prices on the department store page within SSG.com, and then use them at offline stores.
Lee Sung-hwan, Executive Director of Sales Strategy at Shinsegae Department Store, said, “We planned an event that middle-aged and older customers, who have digital affinity comparable to the 20s and 30s generation, can easily use,” adding, “We will strive to create a comfortable and safe store environment so that customers visiting the department store can shop smartly and with peace of mind.”
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