[Report] Chuseok Peak Season and Sales Bring Rare 'Good Breeze' to Retailers... Mixed Feelings Remain (Comprehensive)

Last Chuseok Rush at Lotte Mart Big Market Dobong Branch Crowded with Customers
Department Stores Record All-Time High Sales of Chuseok Gift Sets and Open Wallets for Fall Sales
Traditional Markets and Small Business Owners Show Vitality through Self-Help Efforts and Online-Offline Linked Technology

People are selecting products at the meat section of Lotte Mart Big Market Dobong branch on the 28th.

[Asia Economy Reporters Lim Hye-seon, Cha Min-young, Lee Seung-jin] On the afternoon of the 28th, the warehouse-style discount store 'Big Market Dobong Branch' located in Dobong-gu, Seoul, was bustling with customers purchasing ritual items and gift sets despite it being daytime, just two days before Chuseok. According to the Dobong branch, the store was unusually crowded from the moment it opened, operating all 10 checkout counters in the morning. This was because local residents flocked early in the morning to shop, having not been able to shop the previous day due to mandatory closure regulations.

Big Market Dobong Branch, Closing for the First Time in Seoul, Bustling After a Long Time

Despite enjoying a rare Chuseok sales boom amid the COVID-19 pandemic, the staff at Dobong branch did not look entirely cheerful. Having served the community for seven years since its opening in 2013, the store will cease operations on November 30. As Lotte Shopping is restructuring and gradually closing some stores, Dobong branch became the first store in Seoul to close due to poor sales and other reasons.

A partner company employee met at the store expressed deep regret. The employee said, "This year marks the 10th Chuseok at this store. We have put a lot of affection into the store, even building loyal customers, so many employees feel empty as the feared reality has come true."

The closure decision is even more disappointing because customer numbers increased significantly after the membership system was abolished in June. Another employee who worked at Dobong branch for three years said, "I was very surprised to hear about the closure despite the noticeable increase in customers recently. The company has guaranteed reassignment, which brings some relief in these times, but on the other hand, it is very regrettable."

The main reason for the closure despite the recent increase in customers is the recent passage of a five-year extension of the Distribution Industry Development Act, which enforces mandatory closures twice a month. The judgment was that it would be difficult to recover losses if regulations such as mandatory closures continue despite a temporary sales increase.

It is not only the employees who are distressed by the closure of Dobong branch. Park Sang-young (pseudonym, 48), who runs a restaurant, said, "There were quite a few customers who visited the restaurant while shopping, but if the store closes, it will directly hit sales. If this large store becomes empty, it is obvious that the image of the entire adjacent commercial area will decline," he lamented.

People are browsing products at the Chuseok gift set corner on the B1 floor of the Lotte Department Store Main Branch in Sogong-dong, Seoul, on the 28th.

Chuseok High-End Gift Sets and Autumn Regular Sale Bring Warm Breeze... Anxious About Possible Regulation Tightening

On this day, Lotte Department Store's main branch in Sogong-dong, Seoul, was crowded with people buying last-minute Chuseok gifts. There were especially many customers purchasing Korean beef and fruit gift sets. An employee selling Korean beef explained, "Due to a temporary increase in gift price limits, agricultural and marine products were highly preferred. Because of COVID-19, many people who could not visit their hometowns wanted to give gifts more than usual." In fact, sales of meat and fresh produce gift sets at Lotte Department Store increased by 11.0% and 13.0%, respectively, compared to the same period last year. Shinsegae Department Store also reported an 18.3% increase in Chuseok gift set sales from last month’s 28th to this month’s 28th compared to the previous year.

Among customers in their 30s and 40s, wine was popular. Kim Jeong-hee (35), an office worker in Jung-gu, Seoul, said, "I usually go down to my hometown to meet friends every year, but this year I couldn't, so I stopped by the department store to send my feelings through gifts. I plan to gift two bottles of wine at a more affordable price than I expected." Alcohol sales grew by 21.0% year-on-year. Lotte Department Store prominently featured wine products priced between 50,000 and 100,000 won compared to last year.

Consumers also opened their wallets during the autumn regular sale. Shinsegae Times Square is benefiting from renovations and the regular sale. On this day, the Times Square store was filled with customers in their 20s and 30s browsing clothing and cosmetics. The living goods hall, which occupies an entire building wing with about 90 lifestyle brands, also attracted many visitors. The main branch of Shinsegae Department Store showed a similar trend. From the 25th to the 27th, weekend sales across all Shinsegae Department Store locations increased by 9.7%. Sales of women's fashion, men's fashion, and sportswear rose by 8.0%, 15.8%, and 32.9%, respectively. Sales in the lifestyle category surged by 49.1%.

Although the department stores enjoyed a rare boost from the Chuseok peak season and autumn regular sale, the outlook is complicated. The political sphere has proposed weekend sales restrictions for department stores and complex shopping malls. A department store official explained, "If the amendment to the Distribution Industry Development Act passes, forcing mandatory closures for department stores, outlets, and complex shopping malls, it will be like the crisis faced by large marts. If such a bill passes, the business environment will inevitably worsen."

People are browsing stores at Suyu Traditional Market in Seoul on the 29th.

Seeking Self-Help Measures... Increasing Sales Through Online and Offline Integration

Unlike large marts and department stores that cannot fully smile despite the temporary peak, traditional markets were lively. On this day, at Suyu Traditional Market, long lines formed at food stalls offering jeon (Korean pancakes), rice cakes, songpyeon (half-moon shaped rice cakes), kimchi, seasoned vegetables, fresh produce, and ritual table items, as well as the market's specialties like spicy red skate salad, mini kimbap, twisted doughnuts, and dumplings. The liveliness of traditional markets is thanks to the self-help efforts of small business owners and the integration of online and offline technologies. Suyu Traditional Market, which boasts a 50-year history since its establishment in the 1960s, is undergoing digital innovation. Previously, delivery was mainly long-distance parcel service, but since early this year, real-time delivery within the Gangbuk area of Seoul has become possible through Naver Smart Store's 'Our Neighborhood Shopping' and the public delivery app 'Noljang (Come to the Market)'. Among all partner markets on Our Neighborhood Shopping, Suyu Traditional Market ranks third in the number of favorites with 25,212, following Gwagokbon-dong Market and Amsa General Market. It also has the most participating stores among Seoul markets partnered with Noljang. Being adjacent to Suyu Market and Suyu Traditional Market has realized economies of scale.

Throughout the market, signs promoting services such as 'Card Accepted,' 'Onnuri Gift Certificates,' 'Zero Pay,' as well as 'Noljang (Come to the Market) App Usage,' and 'Baedal Minjok' were posted. Ji Sun-hee (pseudonym), an employee at 'Haeseong Banchan,' which has high review counts in the Our Neighborhood Shopping section, said, "The first floor is busy, but the second floor is even busier preparing nationwide ritual table parcel deliveries and shipments. Since joining Naver and Noljang, the store has become more famous, and sales have increased by 50% compared to before, based on my experience." One butcher shop saw a 10% sales increase, and a dumpling and twisted doughnut shop saw about a 20% increase. The dumpling shop owner Han Ju-yeon (pseudonym) said, "Orders seem to be gradually increasing as we inform regular customers first. Currently, a delivery manager collects and takes the products, but it would be great if public support increases and more staff can be hired later." The snack shop owner Yoo Hye-yeon (pseudonym) said, "There are some shortcomings in product photos and descriptions, but I expect improvements gradually."

Rice cake shops and clothing stores are going through particularly tough times due to the COVID-19 impact. They expressed disappointment as online and mobile app orders only amount to one or two per day, much less than expected. Kim Ji-hye (pseudonym), an employee at a rice cake shop, sighed, "This Chuseok, families did not gather, so group songpyeon orders drastically decreased. Sales seem to have dropped by more than 50% compared to last year." Last year, one stall was fully stocked with rice cakes and colorful songpyeon, but this year, they mainly displayed small packaged products priced at 10,000 won.

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