4th Store Opens in Changwon, Gyeongnam on 31st Following Honam Region... Secures 6 Stores in First Half
Breaking Warehouse Discount Store Stereotypes... "Maintaining Rational and Optimized Volume and Pricing Policies"
'Max Only' Differentiated Products Expanded to 43% Composition
One-Stop Shopping Linked with Specialty Stores like Electronics and Toys... "Overcoming Limitations of Existing Warehouse Discount Stores"
Expecting Long-Distance Customer Inflow through 2nd 'Bottle Bunker' Store
[Asia Economy Reporter Kim Yuri] On the 31st, Lotte Mart's warehouse-style discount store 'Maxx' will launch its 4th branch in Changwon, Gyeongnam. It is a new-concept warehouse discount store that optimizes bulky products into reasonable quantities and increases differentiated products available only at Maxx to nearly half, aiming for differentiation. By linking with specialty stores such as electronics, toys, and liquor, it enables 'one-stop shopping,' aiming to overcome the limitations of existing warehouse discount stores. Lotte Mart plans to convert its existing warehouse discount stores Big Market Geumcheon and Yeongdeungpo branches into Maxx, securing six stores in the first half of the year and expanding Maxx to 20 stores by next year.
On the 24th, Lotte Mart said, "Following the Songcheon, Sangmu, and Mokpo branches opened earlier this year in the Honam region, we will open the 'Maxx Changwon Jungang Branch' on the 31st." They added, "We will first strengthen Maxx's competitiveness in the Honam region and Changwon area, where warehouse discount stores have not yet entered."
The Maxx Songcheon and Sangmu branches, opened in January, have shown good results with sales tripling and store visits increasing more than 3.6 times on average over about two months compared to before conversion to Maxx. The focus on product competitiveness targeting the main demographic of people in their 30s and 40s is seen as the reason for this success. At the newly opening Changwon Jungang branch, the proportion of 'exclusive products' available only at Maxx stores has been expanded to 43%. This is an 8 percentage point increase compared to about 35% at the Songcheon, Sangmu, and Mokpo branches, strengthening product competitiveness.
At Maxx Changwon Jungang, following the rising trend of health foods, German imported protein drinks 'Bearbells' and collagen-infused 'cold-pressed juices' will be introduced. For the first time in a warehouse discount store, 'Harim IFF animal welfare chicken parts' will be available. Overseas famous contemporary brand clothing and luxury brand products preferred by customers in their 30s and 40s will also be offered at reasonable prices.
The directly operated bakery 'Pungmiso (風味所)', which brings out the flavor of raw materials, and the pizza brand 'Cheese & Dough', known for its delicious cheese, will be developed as Maxx's signature brands. The representative product of Pungmiso, the 'French Baguette', is made using French flour and the polish fermentation method, undergoing a 24-hour low-temperature maturation process. At Cheese & Dough, an 18-inch extra-large pizza with chewy dough matured for 48 hours at low temperature will be introduced.
Warehouse discount stores fundamentally provide products at low prices by minimizing direct and indirect costs based on fast-moving products and reflecting this in product prices. As the number of product types increases, direct and indirect costs also increase, so about 3,000 products are generally operated considering operational efficiency. However, from the customer's perspective, this means they have to purchase major daily necessities at the warehouse discount store and then make additional purchases through other channels, causing inconvenience.
Warehouse discount stores have a younger customer base compared to general discount stores, with customers in their 30s and 40s accounting for 60% of sales composition. Since this demographic has a strong demand for one-stop shopping, Maxx Changwon Jungang will open category killer stores such as Hi-Mart (electronics), Toys "R" Us (toys), Collioli (pet), and Bottle Bunker (liquor) together, aiming to overcome the limitations of existing warehouse discount stores.
The second branch of the wine specialty shop 'Bottle Bunker' will also open at Maxx Changwon Jungang. After opening at Zeta Plex Jamsil in Seoul last December, it has increased related sales about sevenfold compared to the previous year as of the 20th, making it a 'killer content.' It will be located on the first floor of Maxx Changwon Jungang, covering approximately 992㎡ (about 300 pyeong), offering around 4,000 varieties of wine and whiskey.
Bottle Bunker aims to be a mega wine curation shop where you can discover your own taste under the concept of 'Everything about wine! If it's not here, it's nowhere.' At Bottle Bunker Changwon Jungang, limited sales of the five major Ch?teau vertical sets rarely found in Korea, such as 'Ch?teau Mouton Rothschild (1988?2017)' and 'Ch?teau Margaux (1982?2017) vertical sets,' will be available. Various single malt whiskeys will also be introduced. Representative products include Aran Distillery's ambitious 'Aran 25 Years,' Tamnavulin Distillery's single malt whiskeys with over 50 years of history, 'Tamnavulin 1973' and 'Tamnavulin 1979.' 'Artisan Gin' and '58 Gin' will also be newly introduced at Bottle Bunker Changwon Jungang.
Efforts are also made in curation. In addition to the usual classification by country, curation is conducted under three themes: 'Seasonal,' 'Food Pairing,' and 'Moment.' To ensure suitability and reliability of wine curation, a sommelier with professional knowledge and experience in food and beverage, who is a former New York Michelin 2-star chef, leads customized curation.
At Bottle Bunker’s second branch, a 'Tasting Tap' will operate, allowing customers to experience over 50 varieties of wines ranging from premium vintages to trendy wines. Since its launch at Bottle Bunker Zeta Plex Jamsil, the Tasting Tap has sold about 40,000 glasses, gaining popularity mainly among the MZ generation (Millennials + Gen Z). The Tasting Tap operates by charging an amount on a dedicated card, then touching the card to a machine to taste 50ml of the desired wine. Wines can be enjoyed at prices ranging from around 2,000 KRW to 55,000 KRW per glass according to preference. The wines currently available for tasting are displayed in bottles on the 'Now on Tap,' allowing immediate purchase if the customer likes the wine after tasting.
At Bottle Bunker Changwon Jungang, 'L'Atelier Dubois,' a premium wine accessory brand exclusively imported and distributed in Korea by the premium lifestyle select shop 'The Conran Shop,' will be housed. Established in France in 1926, L'Atelier Dubois is a top-tier wine accessory brand. About 30 products, including the 'Ueno Motion Opener' and 'Stopper,' will be exhibited and sold, enriching Bottle Bunker's attractions.
Shin Juback, head of Lotte Mart Maxx division, said, "Maxx is designed with products and content targeting young customers in their 30s and 40s as the main demographic," adding, "As an open warehouse discount store, we aim to establish it as a local playground."
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