Chicken Followed by Pizza 'Ultra-Low Price Competition'
Lotte Mart, XXL Size 9,800 Won
Homeplus, PB Frozen Pizza 2,490 Won
[Asia Economy Reporter Lim Chunhan] Recently, as the price of popular franchise pizzas soared well above 30,000 won, large discount stores have thrown down the gauntlet. With Homeplus's Dangdang Chicken gaining popularity, the front line seems to be expanding from half-price chicken to pizza.
According to the industry on the 27th, Lotte Mart will sell its 'Cheese & Dough Original Pizza' at a discounted price of 9,800 won, down 5,000 won from the regular price of 14,800 won, for L.Point members from the 1st to the 14th of next month. Cheese & Dough is Lotte Mart's own pizza specialty brand, operating 21 stores nationwide including Seocho and Songpa branches. The Cheese & Dough pizza is an 18-inch (45cm) XXL size pizza, twice the size of a regular 13-inch R size pizza. It uses a unique cheese blend made from three different types of cheese, providing a rich cheese flavor. The dough is freshly made upon order and uses a 48-hour cold-fermented dough that remains chewy even when cooled.
Homeplus is offering its private brand (PB) product, 'Signature Pizza,' at a discounted price of 2,490 won from the regular price of 4,990 won until the 31st of this month. This product is sized for 2 to 3 people and can be easily cooked using a frying pan or similar. The varieties include mushroom pizza, four-cheese pizza, and mozzarella cheese pizza. Earlier, Emart sold its freshly made 'Sausage Pizza' at 5,980 won per pizza, limited to one per person, until the 24th.
The ultra-low price competition among large discount stores began when Homeplus launched its 6,990 won 'Dangdang Chicken' in June. Dangdang Chicken emphasizes same-day production and manufacturing to enhance quality while significantly lowering the price. The varieties include fried chicken and sweet seasoned chicken. Lotte Mart is selling 'Big Chicken' for 7,800 won when paid with a promotional card until the 31st. Big Chicken uses a whole 10-ho domestic chilled chicken, fried in clean oil, characterized by its savory taste and generous portion. Emart introduced '5-Minute Chicken' made from domestic 9-ho chilled chicken at 9,980 won last month and temporarily sold fried chicken at 5,980 won from the 18th to the 24th.
The reason large discount stores are engaged in this half-price war is due to its high publicity. There is also a strategy to regain customers who had shifted to e-commerce after the COVID-19 pandemic back to offline stores. In fact, chicken sales see daily open runs, and resale with premiums on secondhand trading sites is occurring, showing strong consumer response. Coupled with the issue of price stabilization, the situation has changed compared to past controversies over the impact of generous chicken pricing on local businesses. With chicken and pizza priced under 10,000 won, franchise companies are even facing criticism for allegedly having taken excessive profits until now.
A representative from a large discount store said, "In addition to operating major fresh foods and daily necessities at the lowest prices, we are offering affordable dining options that the whole family enjoys," adding, "We will continue to consider and promptly implement various ways to provide benefits to customers increasingly burdened by high prices."
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