Summary
- Market Shift: Corporate supermarkets (SSMs) in Korea have shown resilience with a growth rate of 3.7% in 2023, despite economic downturns and high inflation.
- Key Players: Major SSMs like GS Retail (007070:KS), Lotte Shopping (023530:KS), E-mart (139480:KS), Homeplus are driving the market.
- Consumer Transactions: Card payment data indicates a significant increase in transactions at SSMs, reflecting consumer preferences for fresh, small food purchases.
- Trade Data: The abolition of regulations on supermarket opening hours and expansion plans of major SSMs are expected to positively impact the market.
Resilience and growth
The Korean retail sector is witnessing a renaissance of corporate supermarkets (SSMs), marked by resilience and growth despite challenging economic conditions. This article explores the factors contributing to this resurgence, supported by SSM and card transaction data processed by Aicel Technologies.
Market Dynamics
Resilience of Corporate Supermarkets
In the face of prolonged economic downturns and high inflation, SSMs have demonstrated surprising resilience, with a growth rate of 3.7% in 2023. This trend is driven by consumers increasingly opting for neighborhood SSMs for their fresh, small food purchases, rather than making bulk purchases at larger marts.
Key Players in the Market
Major SSMs such as GS Retail (007070:KS), Lotte Shopping (023530:KS), E-mart (139480:KS) and Homeplus are at the forefront of this market shift. As of January 2024, GS The Fresh holds the largest market share at 34%, with Lotte Super closely behind at 19%, according to Aicel’s consumer data. E-mart Everyday's growth from a 16% share in 2018 to its current position highlights its significant market trajectory.
Consumer Transaction Data
Card Payment Trends
Aicel's consumer transaction data reveals that card payments at major SSMs closely align with public data from the Ministry of Trade, Industry and Energy. This data shows a significant increase in transactions, indicating a strong consumer preference for fresh food purchases at SSMs.
Data Insights
Market Expansion and Regulation Changes
The "Big 4" SSMs - GS Retail (007070:KS), Lotte Shopping (023530:KS), E-mart (139480:KS), and Homeplus - are recognizing shifts in consumption patterns and are planning to increase the number of stores and expand their fresh food product lines. The government's abolition of hypermarket and supermarket opening hours regulations is expected to positively impact business activities.
Aicel Revenue Tracker
Monitoring SSM market share trends through Aicel's data in 2024 could provide insightful predictions on which companies will dominate the market. The gradual shift observed in consumer transaction data closely follows the quarterly earnings reports of the major SSMs, providing a clear picture of market dynamics.
Conclusion
The Korean retail sector is undergoing a significant transformation, with corporate supermarkets showing remarkable resilience and growth. Companies like GS The Fresh, Lotte Super, and E-mart Everyday are leading this change, leveraging consumer transaction data to make informed business decisions. Aicel Technologies' real-time data provides essential insights into the evolving market, helping stakeholders navigate the competitive landscape.
