January Deli Sales Up 46% Compared to Two Years Ago
"Policy to Diversify Deli Menu"
Homeplus announced on the 6th that the cumulative sales of the 'Dangdang (Same-day Cooking · Same-day Sale) Series' products, including Dangdang Chicken, surpassed 7.1 million packs as of the 31st of last month.
The Dangdang Series is an instant-cooking product line launched by Homeplus, led by Dangdang Chicken. Dangdang Chicken was introduced in June 2022 as part of price stabilization efforts, and it gained popularity through word of mouth, even causing 'open-run' phenomena at some stores.
A model is looking at the deli corner at the Homeplus Mega Food Market Gangseo branch in Deungchon-dong, Seoul on the 6th. [Photo by Homeplus]
Homeplus explained that deli products such as Dangdang Chicken are attracting customers and contributing to a turnaround in performance. While in the past customers purchased deli menus alongside their groceries, recently some customers visit the store specifically to buy deli menus. In fact, more than 4 out of 10 customers who visited Homeplus in the past six months purchased deli products.
As the number of customers seeking Homeplus deli products increased after the launch of Dangdang Chicken, deli sales have also been on the rise. In January of this year, deli sales increased by 46% compared to the same period two years ago. During the six months following the launch of Dangdang Chicken (June 30 to December 29, 2022), deli sales increased by 38% compared to the same period the previous year.
Homeplus deli offers a variety of menus including Korean, Chinese, Japanese, and Western cuisines. The taste and quality have also been improved, with multiple meetings and dozens of tests conducted before launching a single menu item. They supplement shortcomings through customer surveys and continuously introduce new menus that align with trends.
The 'Lazy Economy' phenomenon, a consumption behavior of buying convenience with money, also played a role in the popularity of deli products. Customers can conveniently purchase without the hassle of cooking processes, and reasonable prices have been a strong advantage.
Homeplus has diversified its deli brands, including the Dangdang Series. They are developing various brands to target diverse demands, such as 'Homeplus Table' focusing on fresh deli products, the 'Dundun Series' as meal replacements, 'Jigeum Hankki' for small portions aimed at one- to two-person households, and 'Gobaek Sushi.'
Kim Sang-jin, Head of Trade Marketing at Homeplus, said, "With the popularity of Dangdang Chicken, Homeplus deli has been continuously developing, striving to capture taste, quality, and price, resulting in becoming a specialized section where customers can find everything about instant-cooked foods. As customers’ expectations for taste and cost-effectiveness rise, we will make efforts to present the optimal menu through thorough customer research."
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