The Story of a Neighborhood Supermarket Facing Closure Transforming into an Unmanned Smart Supermarket

Seoul Dongjak-gu Sadang-dong Hyeongje Super Transforms into Smart Super No.1 Store
'Manned by Day, Unmanned at Night' Store Digitalization
Aiming to Provide Small Business Owners with 'Life with Evenings'

Choi Je-hyung (61), the owner of Hyungje Super, which has been operating for 9 years in Sadang-dong, Dongjak-gu, Seoul, explained that the smart super market became an opportunity for change amid a crisis in sales caused by the opening of nearby convenience stores and COVID-19. Photo by Kim Hee-yoon

[Asia Economy Reporter Kim Heeyoon] “I have been running my store for 9 years, but after a convenience store opened right across the street, there was no way to avoid a drop in sales. Still, my wife and I can’t watch the store at night...”

Choi Jehyeong (61), the owner of Hyeongje Supermarket in Sadang-dong, Dongjak-gu, Seoul, has been running the store here since 2011, but he admitted that recently has been the most difficult time. Choi’s store, located between apartment complexes on both sides, had been doing well thanks to its good location and his meticulous and friendly personality, but sales began to decline gradually after a convenience store opened diagonally across the street. On top of that, the rise of non-face-to-face digital shopping due to the COVID-19 pandemic brought a major crisis to the operation.

To help neighborhood supermarkets facing such difficulties, the Ministry of SMEs and Startups introduced the ‘Smart Supermarket’ initiative to support small business owners. Hyeongje Supermarket became the first store to adopt this. It was reborn as a hybrid store operated with staff during the day and unmanned at night.

Minister Park Young-sun of the Ministry of SMEs and Startups attended the opening event of the first "Smart Super" store in Sadang-dong, Dongjak-gu, Seoul, on the afternoon of the 15th, purchasing items using an unmanned checkout counter. The Smart Super is a hybrid unmanned store model operated by the owner during the day and unmanned at night. The government supports up to 10 million KRW per store for the introduction of smart technologies necessary for unmanned operation, such as smart gates (access authentication devices), unmanned checkout counters, and security systems. Photo by Yonhap News

At the opening event of the first Smart Supermarket on the 15th, Hyeongje Supermarket was revealed with a drastically changed look from its signboard to interior design. An unmanned entry system was installed at the entrance, requiring credit card authentication for entry. The store is equipped with unmanned checkout counters and enhanced security systems, creating an environment optimized for unmanned operation at night.

Choi, who used to watch the store from early morning until late at night, now goes to work at 9 a.m. and takes turns with his wife to manage the store until midnight. From midnight to 9 a.m., the store operates as an unmanned store. During the pilot operation period after the introduction of the Smart Supermarket, Choi explained that the number of nighttime visitors averaged about 30 people, and daily sales increased by about 50,000 to 100,000 KRW.

Choi pointed out that the inability to sell alcohol and cigarettes after switching to an unmanned store due to difficulties in verifying buyers was a regrettable issue, but the Ministry of SMEs and Startups plans to support the development of alternative technologies for buyer identity verification to resolve this problem.

Meanwhile, the Ministry of SMEs and Startups announced that it plans to actively promote the Smart Supermarket development policy as a model case for the digital transformation of small business owners. Additionally, it explained that it will also promote the distribution of 100,000 smart stores to strengthen the competitiveness of small business owners in the digital era.