Expanding In-Store Presence to Strengthen Offline Competitiveness
Daiso Now in 44% of All Major Supermarket Stores
Diversifying Customer Experience and Shopping Items Beyond Food
Boosting Sales and Visitor Numbers with Increased Store Openings
Daiso, a fixed-price household goods store, is playing the role of an 'anchor tenant' for large supermarkets aiming to strengthen their offline channel competitiveness. An anchor tenant refers to a key lessee within a shopping mall or commercial area. As large supermarkets bolster their grocery sections, including fresh foods, to counter the onslaught of e-commerce and other online platforms, they are bringing in Daiso?known for its ability to attract customers offline?to increase dwell time and boost sales. This symbiotic relationship is expected to expand as stable rental income can also be anticipated.
According to industry sources on the 20th, Daiso is currently located in 26 out of 132 Emart stores nationwide. Including the warehouse-style discount store Traders Wolpyeong branch, Daiso stores are present in 27 out of 155 total stores. Lotte Mart operates Daiso in 93 out of 111 stores, including the warehouse-style discount store Max, accounting for over 80%. Homeplus has also attracted Daiso to 54 out of its 127 stores. The Daiso occupancy rate within these large supermarkets exceeds 44%.
An industry insider explained, "Large supermarkets are strengthening the food sector, where consumers need to check freshness and purchase on-site, to attract customers to their stores. In the non-food sector as well, there is a competitive trend to attract Daiso, which is highly preferred, to diversify customer experiences and shopping items." They added, "Since Daiso is popular among children and the 10-20 age group, it also effectively draws family customers with children to the supermarkets."
The positive impact of Daiso's entry on store performance has been confirmed. For example, Emart newly introduced Daiso to nine stores last year, and in the following three months, the number of visitors based on point members increased by 12% compared to the same period the previous year, with sales rising by 7%. Daiso is steadily expanding its presence by opening stores in some department stores and complex shopping malls as well. In November last year, Daiso opened a store at the Busan Premium Outlet operated by Shinsegae Simon, marking the first in the domestic premium outlet industry.
From Daiso's perspective, coexistence with offline sales channels, including large supermarkets, is regarded as a 'win-win.' A Daiso representative said, "When opening new stores, we usually utilize multiple floors of a building to maximize space, but when building ownership is divided among several parties, contracts become complicated and rent calculations are difficult, so there are quite a few areas in Seoul where we have not been able to open stores." They added, "By entering well-located large supermarkets or shopping malls, we are relatively free from these issues, and the well-equipped parking facilities help consumers stay longer and purchase products." The number of Daiso stores in other distribution channels increased from 253 in 2020 to 290 in 2023.
As Daiso becomes a 'precious asset' in offline channels, more stores are expanding their store sizes to meet Daiso's demands. The store located in Emart Uiwang branch is 2,744㎡ (approximately 830 pyeong), the largest among Daiso stores nationwide. The Daiso stores in Homeplus Sangbong branch and Lotte Mart Gimhae branch are also sizable, measuring 2,612㎡ (approximately 790 pyeong) and 2,579㎡ (approximately 780 pyeong), respectively. An industry insider said, "Stores with Daiso are showing strong sales performance, and discussions for additional store openings are continuously underway."
Meanwhile, Daiso, which sells around 30,000 products at fixed prices, is continuing to expand its scope by adding health functional foods starting from the 24th, following its category expansion into beauty products. According to the Fair Trade Commission's franchise business information system, the total number of Daiso stores increased from 1,339 in 2020 to 1,519 in three years, and sales are expected to exceed 4 trillion won last year. Daiso is rapidly growing as a major visit course not only for domestic customers but also for foreign tourists visiting Korea. Last year, overseas card payment amounts, which provide insight into foreigner purchases, grew by about 50% compared to the previous year, and the number of overseas card payment transactions also increased by approximately 42%.
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