Big Sale Event Held... Large Supermarkets 'Frown' Over Mandatory Closure Day

'Korea Donghaeng Sale'

Department stores, marts, traditional markets participate
Discounts from electronics to agricultural products
Overlap with mandatory closure days of three major marts
Concerns over weekend sales impact

On the 26th, when the discount event "Korea Together Sale," planned to overcome consumption contraction and economic downturn caused by COVID-19, began, an information banner was hung at the outdoor event venue of a large outlet in Seoul. This Together Sale, involving all economic entities such as traditional markets, neighborhood supermarkets, department stores, and large marts, offers gift certificates and discount events and will be held for 17 days until the 12th of next month. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Hye-seon Lim and Seung-jin Lee] The large-scale discount event "Korea Together Sale," aimed at overcoming the damage caused by the novel coronavirus infection (COVID-19) and revitalizing domestic consumption, begins today (26th). Running until the 12th of next month, the Together Sale is a massive consumption promotion event involving all economic players, including large retailers, small business owners, and traditional markets. While the distribution industry welcomes this, the three major large marts are distressed due to overlapping mandatory closure days.

◆ What products are discounted and by how much? = The Together Sale features participation from 35 companies including department stores, large marts, convenience stores, and electronics retailers, along with 633 traditional markets and about 5,000 neighborhood supermarkets, offering various products at discounted prices. Department stores have prepared various events timed with the "Summer Regular Sale" during this period.

First, a large-scale discount event is held for fashion companies struggling with accumulating inventory. From now until the 2nd of next month, the "Cheer Up Korea Korea Fashion Market," hosted by the Ministry of Trade, Industry and Energy, will feature a total of 31 fashion brands. Department stores offer up to 80% discounts on fashion brand products such as Black Yak, Kolon Sports, Ribbon, Le Shop, and On&On.

At Lotte Department Store, customers can purchase shoes, cosmetics, and wine at low prices. Across all department store branches, about 90 shoe-related brand products are sold at up to half price. Seven luxury brands including Yves Saint Laurent, Lanc?me, and Kiehl's offer a 20% gift certificate when purchasing products over 200,000 KRW. Reflecting the demand for home drinking and solo drinking, wines priced between 20,000 and 50,000 KRW are also available.

Shinsegae Department Store prepared gifts such as eco-bags and board games instead of gift certificates, featuring local specialty products from regions suffering from sluggish domestic demand and blocked export routes. Hyundai Department Store will provide customers with 3 billion KRW worth of Plus Points. Customers who purchase over 100,000 KRW during the event period can receive points based on the payment amount. Additionally, summer season new products from about 250 brands in fashion, accessories, and sports will be discounted by 10-50% compared to the initial selling price. About 70 overseas fashion brands including Lanvin and Mulberry will also be on sale.

Discounts on agricultural, livestock, and marine products will also be offered. Egg-related organizations will conduct on-site sales, and the Fisheries Cooperative will offer up to 50% discounts on popular items such as abalone and eel. Furthermore, the Ministry of SMEs and Startups, together with the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation, plans to supply eight agricultural products including potatoes, onions, watermelons, and cucumbers produced in June and July to neighborhood supermarkets at 80-90% of wholesale market prices.

Convenience stores are also joining the Together Sale to help revive the domestic economy. GS25 will sell instant noodles, ready-to-eat foods, beverages, disposable masks, and hygiene products at low prices during the event period. CU will conduct buy-one-get-one-free and other promotional events on about 2,100 products including beer, refrigerated beverages, and ice cream until next month.

Lotte Hi-Mart will offer additional L.Points to customers purchasing large home appliances such as air conditioners, refrigerators, and TVs at about 460 offline stores nationwide until the 12th of next month. The Lotte Hi-Mart online shopping mall will also hold a "Small and Medium Brand Special Exhibition" during the same period, showcasing various electronics from domestic small and medium brands at discounted prices.

◆ Marts face mandatory closure = The three major large marts?E-Mart, Lotte Mart, and Homeplus?have joined the domestic consumption revival effort through gift certificate giveaways and discount events from the 25th until the 1st of next month. However, they must close on the 28th, just three days after the start of the Together Sale. On that day, about 78% (328 out of 418) of the large mart stores will be closed due to mandatory closure. According to the Distribution Industry Development Act, local governments enforce large marts to close twice a month. Although mandatory closure days vary by region, most areas nationwide including Seoul, Incheon, Daegu, Busan, and Jeolla designate the second and fourth Sundays.

As a result, large marts are concerned that this Together Sale will only be half successful. Although it is a large-scale discount event implemented to revitalize the sluggish domestic economy amid the COVID-19 crisis, they must close on Sundays, when consumer traffic is highest, due to mandatory closure regulations. Large marts have already suffered sales hits after being excluded from disaster relief fund usage, and now they face mandatory closures during the large discount event period, leading to growing dissatisfaction.

A representative from a large mart explained, "The more large-scale the discount event like the Together Sale, the more weekend concentration occurs. We saw this event as an opportunity to rebound from severe sluggishness, but weekend closures make it difficult."

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