Large retail shops change consumers’ shopping pattern; E-Mart, Korea’s largest discount store chain, said its shop in Chang-dong located in the north part of Seoul, will mark its 20th anniversary
November 9, 2013 Leave a comment
Large retail shops change consumers’ shopping pattern
Sohn Dong-woo, Lee Yu-jin
2013.11.08 16:35:00
E-Mart, Korea’s largest discount store chain, said Friday its shop in Chang-dong located in the north part of Seoul, will mark its 20th anniversary next Tuesday.
The 20-year-old retail shop and the advent of followers grew rapidly for a short period, changing the nation’s retail industry and consumers’ shopping practices completely. Large retail shops take up a significant part of Korea’s retail industry. Their market value reaches 38.8 trillion won ($36.44 billion), larger than that of department stores with 29.1 trillion won. The number of such shops amount to 470 in Korea and 627, including those outside Korea. A shift in the major consumer demographics from women to family members is probably the biggest impact of large retail shops. The target shopping time has also been changed from morning time in week days to afternoon on weekends.
“The rapid growth of large retail shops also reflects our societal change in which double-income households increased over the past two decades. The impact goes beyond the industry,” said Kim Joo-young, head of Korea Distribution Association.
The industry’s another achievement is their successful protection of the local market from foreign retailers.
Wal-Mart and Carrefour entered the Korean market in 1996 but the market was unequal to their competence.
In addition, retail shops have contributed to modernizing the distribution industry by introducing product barcodes, nationwide logistical system and competition for price reduction.
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