The Distribution Industry Suffocates Under COVID-19... Opening Booms Disappear, Temporary Closures Continue

On the morning of the 21st, a resident is reading a temporary closure notice at the entrance of Emart Town Kintex branch in Ilsan, Goyang, Gyeonggi Province. (Photo by Yonhap News)

[Asia Economy Reporter Seungjin Lee] The new coronavirus infection (COVID-19) crisis is worsening, causing increasing distress in the distribution industry. The number of stores temporarily closing due to confirmed visits by infected individuals is steadily rising. Additionally, newly opened stores are missing out on the usual opening surge due to the impact of COVID-19.

According to the distribution industry on the 22nd, as of the morning of that day, five stores nationwide have closed due to confirmed visits by COVID-19 patients or suspected infections among employees. Hyundai Department Store Daegu Branch and E-Mart Seongsu Branch have been temporarily closed since the 20th, while E-Mart Ilsan Kintex Branch, Homeplus Gwangju Gaerim Branch, and Lotte Department Store Jeonju Branch have been temporarily closed since the 21st.

E-Mart Town Kintex Branch temporarily closed on the 21st as a preemptive preventive measure after an employee tested positive in the first COVID-19 test. The employee received the first test result early that morning and was later confirmed positive in the second test. Earlier, on the 20th, E-Mart Seongsu Branch was temporarily closed after a confirmed patient visit was identified.

With the Kintex Branch also temporarily closed, E-Mart has taken temporary closure measures for a total of five stores so far. Previously, Gunsan Branch, Bucheon Branch, and Mapo Gongdeok Branch were temporarily closed in succession and each resumed operations after three days.

Lotte Department Store Jeonju Branch is the second location to be temporarily closed following the main branch. The 113th confirmed patient who visited Jeonju Branch is known to have traveled around Daegu Dongseong-ro and Bukseong-ro areas for tourism purposes from the 7th to the 9th. Afterwards, on the 14th at around 6:30 PM, the patient shopped at Lotte Department Store Jeonju Branch, showed symptoms on the 19th, and was confirmed positive on the 20th, currently under quarantine.

As the number of temporarily closed stores increases nationwide, the distribution industry is on high alert. It is impossible to predict when or which branch a confirmed patient might visit. The resulting sales damage is also severe. For large supermarkets, daily sales losses reach hundreds of millions of won, with total losses so far amounting to at least several billion won. For large department stores, sales losses are expected to be at least several tens of billions of won.

In addition to sales losses caused by temporary closures, the atmosphere of refraining from outdoor activities due to COVID-19 has made it difficult to see the usual opening surge for new stores.

Hyundai Department Store Duty Free opened its second downtown duty-free store on the 20th at Doosan Tower in Dongdaemun, Seoul, following the Seoul Trade Center branch. Normally, various large-scale opening events would be held to attract customers, but due to COVID-19, no events were conducted. Additionally, the store started shortened operating hours immediately, opening only from 12 PM to 9 PM for the time being.

Earlier, on the 4th, the duty-free industry began shortened operating hours due to the spread of COVID-19. Lotte Duty Free shortened its closing time by 2 hours and 30 minutes, from 9 PM to 6:30 PM. Shinsegae Duty Free also moved up closing times by 2 hours at its Myeongdong, Gangnam, and Busan branches. Seoul Yongsan HDC Shilla Duty Free delayed its opening by 30 minutes and moved up its closing time by 2 hours.

This content was produced with the assistance of AI translation services.