Homeplus 7,000 Won Chicken Sold 260,000 Units by 2nd
1-2 Month Sales Target Achieved in One Week, 'Chicken Open Run' Phenomenon
Value-for-Money Products Popular in Large Mart Deli Corners Amid 'Lunchflation'
Emart's 4,000-5,000 Won Ready Meals Sales Jump 25% from January to July
Rising Cabbage Prices Bring 'Summer Kimchi'... Lotte Mart Offers Pre-Orders
[Asia Economy Reporter Kim Yuri] Amid soaring prices, the 'cost-effective meal menu' at large supermarket deli corners is gaining great popularity. Promotional chicken products priced under 7,000 won are selling out quickly, causing an 'open run' phenomenon. As expectations grow that high inflation will worsen, more people are preparing 'summer kimchi,' leading to advance reservations for salted napa cabbage even in midsummer.
According to the distribution industry on the 6th, the cumulative sales volume of Dangdang Chicken, offered by Homeplus at 6,990 won, reached 260,000 pieces from June 30 to August 2. Homeplus achieved its originally planned sales target for 1 to 2 months within just one week of launch. Homeplus stated, "Targeting the high-inflation era, we focused on cost-effectiveness. In today's era where chicken costs around 30,000 won, we planned this product at a price range of 6,000 to 7,000 won so customers can enjoy it without burden, eliciting an explosive response from customers."
Homeplus explained that they were able to sell at a low price by lowering the purchase price through bulk buying and that preparing the food directly in stores also contributed to cost reduction. The supermarket said, "Despite the low price, we handle domestically produced refrigerated chicken to maintain freshness, and by producing and selling on the same day, we ensure taste and quality," adding, "The addition of tasty potato toppings to make the portions generous is also a factor in its popularity." Homeplus is preparing to launch new products in the Dangdang Chicken series, encouraged by customer response.
As the burden of prices increases, not only chicken but also deli items such as sandwiches, salads, and sushi, which are light and convenient for a meal, are gaining popularity at large supermarkets. Homeplus Banghak branch, which newly opened in early June, saw deli sales grow 124% year-on-year in July. The deli corner at Homeplus Mega Food Market Incheon Ganseok branch, renewed last February, also continues to show steady popularity. Sales from the opening day (February 17) to July 31 increased about 29% compared to the same period last year. July sales rose 38% year-on-year. Salad and sandwich sales surged 13 times (1350%) in July alone.
A similar trend is continuing at E-Mart. According to E-Mart, sales of convenient meals priced between 4,000 and 5,000 won, such as sandwiches, salads, and gimbap, which address so-called 'lunchflation (lunch + inflation),' rose 25% year-on-year from January to July this year. While last year, due to social distancing making dining out difficult, there was high demand for dinner and late-night menus like sushi and snacks at E-Mart, this year, due to rising dining-out prices, the presence of affordable and simple convenient meals to quickly satisfy one meal is becoming more prominent.
The number of people seeking convenient meals during lunchtime has also increased. This year, the number of customers purchasing E-Mart Kitchen Deli products from 11 a.m. to 1 p.m. rose 20% compared to last year, resulting in a 30% increase in sales. Sandwich sales rose 30%, and salad sales jumped 95% this year. The competitively priced triangular gimbap, at 1,080 won each, saw a 48% increase in sales this year. Additionally, demand for microwaveable simple dishes such as bibimbap and pasta (30%), as well as gimbap and rolls (26%), also noticeably increased.
Due to poor growth and soft rot disease affecting napa cabbage, continuous price surges are expected, leading to the emergence of 'summer kimchi.' Lotte Mart is conducting advance reservations for highland salted napa cabbage until August 17, the first among large supermarkets. Although the kimchi-making season usually starts at the end of November, more consumers are preparing summer kimchi before napa cabbage prices rise further. A Lotte Mart official explained, "Until now, advance reservations for salted napa cabbage began in early November when customer demand started to increase, but to accommodate consumers preparing for summer kimchi and the earlier Chuseok holiday kimchi, we quickly prepared advance reservation products for the summer season." Advance reservations are also being taken for the 2022 new sun-dried red chili peppers, essential for kimchi. Due to a decrease in cultivation area and the impact of summer rains, chili production is expected to drop by more than 20% compared to last year, raising concerns about continuous price increases for this crop.
A Lotte Mart official said, "To help consumers prepare kimchi before napa cabbage prices surge, we are the first large supermarket to start advance reservation sales of salted napa cabbage and new dried chili peppers in summer," adding, "Although these are difficult times with soaring prices every day, Lotte Mart will move swiftly to stabilize prices and help reduce the burden on consumers."
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