Market Kurly and Oasis Market Orders Surge to Record Highs... Widespread Sold-Out Situations Emerge

Sharp Increase in COVID-19 Cases
Surge in Online Fresh Food Orders
Record High Since March

[Asia Economy reporters Minyoung Cha and Seungjin Lee] The resurgence of the novel coronavirus infection (COVID-19) and the implementation of social distancing level 2.5 have coincided, causing a surge in delivery orders for online fresh food markets. Since March, when the initial spread of COVID-19 occurred, the number of orders has reached its highest level, resulting in supply shortages and frequent sell-out situations.

According to the industry on the 31st, on the Market Kurly application, items such as 'Salad Panda Bottle Salad,' 'Cully's Animal Welfare Milk 900ml,' 'Norwegian Fresh Salmon Sashimi 120g,' 'Babeun Wando Abalone,' and 'Bibigo Thick Grilled Spanish Mackerel' were all sold out by 10 a.m. Ready-to-eat meal (HMR) products like 'Cully's Mac & Cheese' and 'Tasty Tokyo Beef Curry' also sold out early.

At the same time, on the food specialty mall Oasis Market, orders for 'Pesticide-free Bok Choy (100g),' 'Pesticide-free Chives (200g),' 'Yomiyomi Organic Juice,' and 'Sangha Farm Organic Low-fat Milk' were closed early.

Housewife Kim, residing in Gwangjin-gu, Seoul, said, "I was reluctant to go out on the weekend, so I shopped at Market Kurly and Oasis Market, but many products were sold out," adding, "Even when stock is replenished, if you don't order early in the morning, items often sell out. It seems that the number of people shopping via apps has greatly increased."

The order volume of major food specialty online malls has surged since the substitute holiday for Liberation Day (August 17), when daily COVID-19 confirmed cases exceeded 300. As more housewives avoid face-to-face consumption, they are refraining from going out and prefer home-cooked meals over dining out.

Market Kurly's sales from the 16th to the 30th increased by 20% compared to the same period last month and rose 155% year-on-year. It recorded the highest order volume this year, surpassing even the peak in March when COVID-19 was rampant.

Orders are also pouring into the organic food specialty mall Oasis Market. Oasis Market's sales from the 15th to the 30th increased 35% compared to the previous month and 100% year-on-year. As orders surged across fresh foods and processed goods, daily order counts rose from the usual 8,000-9,000 to about 10,000. Due to the sharp increase in demand, early order closures beyond the capacity for same-day delivery have become inevitable.

An Oasis Market official said, "When the number of orders placed on the same day exceeds the capacity for next-day early morning delivery, we close orders early. Early order closures have continued this month following March."

At SSG.com, the integrated mall under Shinsegae Group, sales from the 16th to the 30th of this month increased 10% compared to the same period last month and 30.5% year-on-year. Especially last weekend, the nationwide sell-out rate reached an average of 98%, with orders exceeding appropriate stock levels. This is significantly higher than the recent average sell-out rate of 90-95%, marking the highest level since February, the early stage of COVID-19 spread. The limited quantity for early morning delivery was fully booked on the afternoon of the 30th for deliveries scheduled on the 31st. As of that day, delivery slots for September 1 were also nearing full capacity.

As orders exceeded supply, inventory management and product delivery faced emergencies. An SSG.com official stated, "Although there is a limit to the number of orders processed daily based on our automated logistics system, we are making every effort to manage product inventory and supply." An Oasis Market official also explained, "Word of mouth among housewives has increased sales by about 40% last weekend compared to the previous week. We are increasing employment by hiring about 10 people daily for logistics tasks such as product picking."

Meanwhile, online fresh food companies are also experiencing difficulties due to COVID-19. Although they have no physical stores, logistics centers have become problematic, prompting them to focus on thorough disinfection within the centers. On the 28th, both SSG.com and Market Kurly faced disruptions in some delivery center operations after cooperative delivery drivers tested positive for COVID-19. The confirmed driver worked during the day at SSG.com's 'Neo003' center in Gimpo, Gyeonggi Province, and at night handled Market Kurly's early morning delivery operations.

Market Kurly faced another challenge the very next day, the 30th, when an employee at the refrigerated Center 2 in Jangji-dong, Songpa-gu, Seoul, tested positive for COVID-19, leading to the closure of the center.