SEOUL, January 10 (Korea Bizwire) – South Korea’s big discount chain stores are shifting their strategy from closing underperforming outlets to increasing their competitiveness through renovations.
Lotte Mart, the hypermarket chain operated by retail giant Lotte, plans to renovate around 20 to 30 outlets this year, industry sources say.
For the renovated outlets, killer category stores such as wine, pets, salon and H&B (health and beauty) depending on the commercial characteristics of their neighborhoods will be installed.
For some points of sale, “smart store” functions will be added through the installation of conveyor systems within the points of sale aimed at ensuring rapid delivery of goods ordered online.
Another Homeplus discount store chain is working on renovating 17 outlets this year after zero last year.
The company is emphasizing the renovations on strengthening the supply of fresh foods. Compared to existing outlets that have a food / non-food ratio of 50:50, refurbished outlets will have a 60:40 ratio.
In addition, Homeplus plans to increase the number of “Seven Order” outlets for which the cut-off time for accepting orders for same-day delivery service will be extended until 7 p.m. and closing time. for delivery will be extended until midnight, from the current two to 22 by the first half of this year.
E-Mart Inc., a discount store chain of the Shinsegae Group, will continue its renewal initiative this year after pushing to renovate up to 30% of its existing outlets from 2020.
The fundamental orientation of the renovation of the existing outlets is to strengthen the grocery business as well as to establish picking and packing centers for online orders and delivery through the SSG online shopping center. com from Shinsegae.
“Offline retailers are opting for space innovation and these efforts are leading to the renovation of existing outlets. An industry official said.
Ashley Song ([email protected])