Government's Battle to Control Inflation... Large Supermarkets Take the Frontline Defense

Diversification of Supply Sources and Expansion of Direct Transactions
Cost Reduction through Pre-Stocking and Management
Reducing Consumer Basket Price Burden
May Price Stability Keyword Event Success
Planned Expansion Next Month

As the government launches an all-out effort to stabilize prices, large discount stores have also rolled up their sleeves. The government's measures focus on reducing tariffs and value-added tax on major imported food products and industrial raw materials, leading some to argue that the consumer-perceived effect may be minimal. However, there is hope that when combined with large discount stores' item-specific discounts and other price stabilization efforts, a tangible impact will emerge.

According to the distribution industry on the 31st, large discount stores such as Emart, Lotte Mart, and Homeplus have recently strengthened projects and events focused on price stabilization. Major discount stores unanimously stated that they are reducing costs and easing the burden on consumers' shopping basket prices through diversifying production regions, expanding direct purchasing, simplifying distribution channels, securing and managing inventory in advance, air direct shipping, and bulk purchasing.

Lotte Mart saw sales of agricultural products such as Korean beef, cabbage, cucumber, and potatoes increase by more than 30% during the 'Price Stabilization Event Part 2' held from the 26th to the 29th. Fruit sales also grew by over 20%. During this period, Lotte Mart offered Korean beef, which reduced distribution stages through direct purchasing, at prices discounted by more than 40% compared to regularly available products, targeting consumers heavily burdened by shopping basket prices. Apples were stored using a method that maintains freshness after being harvested in November last year, allowing a total of 600 tons to be sold at prices about 20% cheaper than the average market price. The store stated, "We will continue to expand category-specific discount events applying this method to contribute to price stabilization."

Emart previously held the online shopping festival 'Big Smile Day' offline at Emart on the 14th and 15th, offering seasonal popular fruits at up to 50% discounted prices and also selling animal welfare-certified eggs at discounted prices, receiving high customer response. During this period, Emart's fruit sales increased by 20% compared to the same period last year. Watermelon sales rose by 79%, and apple sales nearly doubled at 90%. Emart Seongsu branch saw about a 30% increase in visitors over the usual weekend during the two days. A Seongsu branch official said, "Visitors were also heavily burdened by recent price increases, but after holding large discount events, they showed positive reactions such as buying more items than usual, even those they would normally purchase only one of." Emart will also expand price stabilization events. Until the 1st of next month, about 20 items including house potatoes and spinach will be offered at 20% discounted prices, and from the 2nd to the 8th, in celebration of YukYuk (MeatMeat) Day (June 6), events will be held offering Korean beef and pork at up to half price.

Homeplus, which has been conducting a large-scale 'Price Stabilization Project' since January, has adopted a strategy to select product groups with high customer demand and offer them at reasonable prices year-round, reducing the burden on customers' shopping basket prices while securing loyal customers. Visible results have also appeared. From January 13, when the project started, to April 22, a 100-day period, Homeplus online sales increased by about 24% compared to the same period last year, and fresh food category sales rose by about 12%. During May, when concerns about rising table prices peaked (May 1?27), sales of imported pork (samgyeopsal and neck meat) surged by 175% compared to the same period last year. A Homeplus official said, "We were able to set drastic prices with discounts of up to 50% through operating representative fresh fruit farms," adding, "We will actively defend prices by diversifying production regions and expanding partners, faithfully fulfilling the role that large discount stores have on the front line of price defense."