Within 2 Hours to Your Door... Lotte Mart's 'Baro Delivery' Service Works

[Asia Economy Reporter Seungjin Lee] Consumer response to Lotte Mart's 'Baro Delivery' service is heating up.

Lotte Mart announced on the 25th that since introducing the 'Baro Delivery' service last month, the daily order volume at Junggye and Gwanggyo stores increased by 130.8% and 175.6% respectively compared to the previous year over about 20 days until May 20.

'Baro Delivery' was officially launched on April 28 at Junggye and Gwanggyo stores under the slogan "We become your refrigerator." The system enables delivery preparation within 30 minutes after online ordering, allowing customers to receive ordered products within a maximum of 2 hours. It is a delivery service optimized for grocery items, focusing on fresh food, ready meals, and side dishes.

To achieve this, Lotte Mart installed a total of 155 meters of ceiling rails inside the Junggye store and set up four vertical lifts (picking stations) within the store. When ordered products are placed on the vertical lifts, the system automatically sorts them by customer and moves them to the rear delivery area.

Additionally, Lotte Mart is pursuing differentiation in online delivery and innovation in the last mile. First, the 'Baro Delivery' service offered at Junggye and Gwanggyo stores will be gradually expanded.

To maximize efficiency, Lotte Mart plans to invest centered on existing store assets rather than building separate online-only centers. Stores will undergo significant changes into 'Smart Stores' and 'Dark Stores.' 'Smart Stores,' like Junggye and Gwanggyo, equipped with picking stations, conveyor belts, and automated packing facilities at the rear, will open two more within this year and increase to 12 by 2021.

Simultaneously with the development of 'Smart Stores,' 'Dark Stores' featuring automated packing facilities at the rear will open 14 locations this year and expand to 29 by 2021.

Lotte Mart will newly introduce 'Dawn Delivery,' which has established itself as a differentiated delivery service in the e-commerce market by utilizing the Gimpo online-only center. Starting with the southwestern Seoul area, where delivery from the Gimpo center is possible, the service area will expand to southern Gyeonggi and Busan by October.

Moreover, the existing 'Store Pickup' service, where customers pick up ordered products at each store's 'Customer Satisfaction Center,' will be activated to provide services suited to customer demand and establish itself as a representative omni-channel service.

To facilitate pickup of refrigerated products, a 'Refrigerated Smart Pick' facility will be installed. 'Refrigerated Smart Pick' allows stable storage of fresh and chilled products and sends individual approval numbers to customers, enabling them to pick up their ordered products themselves from the storage locker.

Through securing various delivery services, Lotte Mart aims to provide customers, who are the main purchasers, with an active role where they can order products, set reservation times, and receive desired products at preferred times and methods, rather than passively waiting for ordered items.

Seho Park, Head of Digital Strategy Division at Lotte Mart, said, "The 'Baro Delivery' service, which allows customers to receive ordered products within 2 hours, is very popular," and added, "We will strive to make the 'Baro Delivery' service, currently available only at some stores, accessible to more customers."

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