The 'Gangdong Daechup' Has Begun...Why Large Supermarkets Are Betting Their Lives on 'Food Markets'

Emart Opens 'Food Market Godeok Branch' on the 17th
Gangdong, with a Rich Hinterland,
Emerges as a Fierce Battleground for Major Supermarkets
"Maximizing the Advantages of Offline Stores"

The large-scale supermarket industry has entered fierce competition over 'grocery markets' in Gangdong-gu, Seoul. Following Lotte Mart and Homeplus unveiling grocery-specialized stores, Emart also opened the 'Emart Food Market Godeok Branch.' The strategy is to boldly reduce the proportion of non-food items in large supermarkets and significantly increase groceries, including fresh foods frequently purchased by consumers at offline stores, to respond to the online-centered consumption trend.

According to the distribution industry on the 17th, Emart opened the grocery-specialized store 'Emart Food Market Godeok Branch' on the basement first floor of Godeok Biz Valley in Gangdong-gu, Seoul. It is the second food market after the Daegu Suseong Branch in December last year and the first store introduced in Seoul.

This store filled 95% of its area (3,471㎡·1,050 pyeong) with groceries. It stocked 13,000 fresh foods and ready-to-eat deli products 20% more than existing stores, and considering the cost-effectiveness consumption trend and the nearby commercial district, it has as many as 21 specialized zones.

In the afternoon of the 17th, the basement level 1 of 'Emart Food Market Godeok Branch' in Godeok Biz Valley, Gangdong-gu, Seoul is crowded with customers waiting in line at the checkout counters. Photo by Jaehyun Park

This is the 'All About Salmon' zone, showcasing the most in-demand 'salmon'. Photo by Jae-Hyun Park

The most distinctive feature of Emart Food Market Godeok Branch is the display counters that meet the preferences of young customers. Each corner had a distinct personality, such as the 'Global Garden' gathering imported fruits and vegetables, the 'Smart Vegetables' corner where freshness can be maintained for a week even when stored in the refrigerator, and the 'K-Black Pork Zone' showcasing three domestic black pork breeds.

In particular, event pop-up stores where customers could taste new products were held throughout the store, allowing direct tasting and purchasing. The store was full of specialized spaces such as 'Sweet Street,' which gathered imported jellies and biscuits popular online, and the bakery store 'Mill & Bakery,' launched in collaboration with SPC Samlip.

The area that attracted the most customers that day was the 'Fresh Food Zone.' Emart introduced ten representative fresh foods at the lowest price level when opening the store. Visitors who swept up these products were frequently seen as items were sold at shocking prices such as 1,480 KRW for two zucchinis, 980 KRW for a bunch of bananas, 7,980 KRW for Bojogae apples, and 2,980 KRW for a tray of 30 eggs. Im Miseon (54), who lives in Gangdong-gu, Seoul, said, "I came after hearing the news that an Emart store would open near my home," adding, "It seems to have plenty to see, so I plan to visit often."

On the 17th, customers visiting Emart Food Market Godeok branch are selecting bananas in the fresh food zone. Photo by Jae-Hyun Park

Ultra-low-priced cosmetics sold only at Food Market Godeok Branch also caught attention. The 'Glow Up' brand, developed in collaboration with Beyond, was offered at Godeok Branch at prices 20% cheaper than Beyond products usually sold at Emart. Choi Jin-il, Executive Director in charge of MD Innovation at Emart, said, "We plan to expand the cost-effective beauty zone to all stores in the future," adding, "Currently, we are at the stage of starting the first test at Godeok Branch."

Gangdong with abundant hinterland commercial districts... Three major supermarkets enter side by side

The Gangdong commercial district in Seoul has recently emerged as a battleground for the large-scale supermarket industry. It is a wide-area commercial district that includes Godeok, Dasan, Jamsil, and Songpa, with a rich hinterland due to new towns and offices. There is a large influx of people in their 20s and 30s who lead distribution consumption trends, and tens of thousands of households are moving into redevelopment and reconstruction complexes, resulting in high population growth potential. Executive Director Choi explained, "The subway will arrive in 2-3 years, and the JYP headquarters will relocate," adding, "Considering that young customers in their 20s and 30s flock to the IKEA Gangdong Branch located in the same building, we settled in Godeok."

Earlier, Lotte Mart also opened 'Lotte Mart Cheonho Branch' near Cheonho Station in Gangdong-gu, Seoul, in January, filling 80% of the store with groceries such as fresh foods and ready-to-eat foods. This considered the characteristics of the commercial district with a high proportion of people in their 30s and single-person households. In fact, the sales composition ratio of ready-to-eat foods at Cheonho Branch is twice the average of all stores. A Lotte Mart official explained, "Cheonho Branch is showing excellent performance through a thoroughly customized store configuration based on the grocery competitiveness, a strength of large supermarkets," adding, "Sales are more than 30% higher than the average sales of 28 stores under 2,000 pyeong of Lotte Mart, and the number of customers is more than 25% higher."

Lotte Mart Cheonho Branch in Gangdong-gu, Seoul. It is characterized by prominently featuring groceries. (Photo by Lotte Mart)

Homeplus planted its flag first in the Gangdong commercial district by opening Mega Food Market Gangdong Branch in August 2023. Homeplus introduced the Mega Food Market, a food-specialized store, for the first time in the large-scale supermarket industry in February 2022 and has expanded to 33 stores.

The Gangdong Branch, with a sales area of over 4,000 pyeong, placed major food-specialized zones such as deli and bakery at the entrance of the food store. A Homeplus official explained, "The food store located on the second basement floor is connected to the subway station, providing excellent customer accessibility," adding, "We improved customer flow efficiency according to local needs to create an environment optimized for shopping."

The reason why the three major supermarkets are simultaneously strengthening 'grocery-specialized stores' is that fresh foods have emerged as the core differentiation of offline stores. Although online consumption trends are spreading recently, many consumers still trust fresh foods such as vegetables and meat only when they can see and select them directly. Executive Director Choi Jin-il said, "Many people buy food after seeing it directly, so we judged that we could maximize the advantages of offline stores," adding, "In the future, mall businesses will be differentiated as Starfield, and general grocery markets as Emart Food Market."