Rising Delivery Fees Due to High Inflation
Expansion of On-Time Delivery Service
Attracting Consumers Using Delivery Apps
A model is introducing the Homeplus Express online '1-hour instant delivery' service at Homeplus Express Gangseo branch in Hwaggok-dong, Seoul.
[Asia Economy Reporter Jeon Jinyoung] Amid high inflation and rising delivery fees, large supermarkets are engaging in a delivery war by partnering with their own e-commerce platforms and corporate supermarkets (SSM). They are focusing on short-distance delivery and deli delivery, starting to compete with quick commerce as well.
According to the industry on the 4th, the three major marts?Emart, Lotte Mart, and Homeplus?are putting effort into growing short-distance delivery services.
In April, Emart opened a logistics center in Nonhyeon-dong, Seoul, and launched a short-distance delivery service business called “SSG Go,” which delivers products within 1 hour to consumers within a 2?3 km radius of the logistics center. The minimum order amount is 20,000 KRW, and the basic delivery fee is 3,000 KRW.
Lotte Mart is expanding its short-distance delivery service called “Baro Delivery,” which delivers within 2 hours, instead of its previous dawn delivery service. Baro Delivery offers free delivery for orders over 40,000 KRW. Initially, the service started at 9 stores capable of short-distance delivery and recently has maintained 20 stores.
Homeplus is also implementing “Express 1-Hour Immediate Delivery” on Homeplus Express Online, where orders placed before 10 PM can receive products within 1 hour.
Additionally, by strengthening deli delivery services, marts have secured competitiveness against delivery applications (apps). Lotte Mart offers a service where customers can receive sashimi and sushi via Baro Delivery. SSG.com and Homeplus also provide online direct mart delivery services, allowing customers to specify desired times to receive sushi, salads, and deli products. These services have successfully attracted consumers who felt burdened by delivery app usage due to increased delivery fees. In Homeplus’s case, online deli sales in July grew approximately 33% compared to the same period last year.
The distribution industry is also focusing on neighborhood commercial area delivery through SSMs, beyond just short-distance delivery from marts. For example, Shinsegae operates general SSG Delivery at Emart, while Emart Everyday, which focuses on neighborhood commercial areas, offers a 1-hour delivery service. Emart Everyday runs an online rapid delivery service called “Speed e-Jangboki,” delivering ordered products within at least 1 hour to customers within a 2 km radius of the store. Currently, this service operates in over 90% of all directly managed stores and plans to expand further. Lotte Super also plans to increase its 1-hour Baro Delivery service.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
