'Dawn Delivery' Comes to Busan... Lotte Mart Expands Service

From December 1, Expanded to Southern Gyeonggi, Seoul, and Busan
Uiwang and Busan Auto Fresh Centers Transformed into Dedicated Dawn Delivery Centers

[Asia Economy Reporter Minyoung Cha] Lotte Mart's dawn delivery service, ‘Dawn ON,’ will expand to cover the entire southern Gyeonggi region as well as Seoul and Busan from December 1.

On the 26th, Lotte Mart announced that the delivery range has been expanded as it took over the operation of the Auto Fresh Centers in Uiwang, Gyeonggi, and Busan, which were previously managed by Lotte Super. Previously, dawn delivery was only available in the western Gyeonggi area and some parts of Seoul through the Gimpo online-exclusive center. The Auto Fresh Centers in Uiwang and Busan operate exclusively as dawn delivery centers without regular daytime delivery.

The proportion of fresh food in online orders is on the rise. In fact, it increased to 51.7% in 2020, and since quality is the top priority for fresh food purchases, Lotte Mart, as a large supermarket with a quality superiority strategy, viewed this as an opportunity and decided to expand its dawn delivery service.

With the expansion of the dawn delivery service, Lotte Mart will strengthen differentiated fresh specialty products such as ‘3-day pork’ and ‘Golden Sweetness Fruits,’ leveraging the strengths of its grocery specialty mall. It will also enhance categories specialized for dawn delivery, including convenient meal replacements and beverage products. Considering the demand for breakfast and easy meals, meal kits, ready-to-eat meals, and deli product lines have been significantly reinforced.

Lotte Mart expects the order volume to triple compared to the current level and increase up to four times next year with this expansion of the dawn delivery service. The ability to cover the entire Busan area is a distinctive advantage compared to e-commerce companies, and the strategy is to secure the dawn delivery market in the Busan region.

To celebrate the expansion of the Dawn ON service, Lotte Mart Mall will hold various promotions and events. Throughout December, first-time Dawn ON customers will receive a coupon pack with three benefits: free shipping on purchases over 9,900 won, a 10,000 won discount on purchases over 40,000 won, and a 5,000 won discount on purchases over 20,000 won. Additionally, a special event will be held offering up to 50% discounts on 10 essential daily necessities selected each day.

Delivery options will also diversify. Besides dawn delivery, Lotte Mart offers various services for online orders, including ‘Immediate Delivery’ within two hours after ordering, ‘Store Pickup’ to collect ordered items in-store, ‘Smart Pickup’ for refrigerated products, and ‘Drive-Thru’ where customers can receive their orders without leaving their cars.

Kim Geonsik, head of logistics at Lotte Mart, said, “Large supermarkets have strengths in fresh foods, which are the main products for dawn delivery. We will focus on maintaining the freshness of fresh foods while delivering them quickly to further strengthen Lotte Mart’s logistics competitiveness.”