Dawn Delivery Boosted by COVID-19... Workforce and Equipment Doubled

Oasis, Kurly, SSG.com, etc.
Increase in Regular MD, Development, and Logistics Staff
Contrast with Offline Retailers
Emart Halts First-Time Hiring
Lotte Mart to Close 16 Stores Within the Year

[Asia Economy Reporter Cha Min-young] While offline retailers are taking measures such as store closures, halting new hires, and workforce reductions due to the novel coronavirus infection (COVID-19), dawn delivery companies are contrastingly doubling their workforce.

According to Oasis, which operates Oasis Market, as of the end of September, the number of full-time job applicants was recorded at 589. Since July, the number of merchandise planners (MDs) has doubled to 19, and they have steadily hired logistics center and cooperative store staff, increasing the number of full-time employees by about 50 in two months. They are also accelerating the transition to a smart factory equipped with automated facilities through technology development investments by their parent company, GeoSoft.

Curly, which operates Market Kurly, has more than doubled its workforce compared to last year. As of the end of September, Curly had about 930 full-time employees, an increase of over 500 from about 400 at the end of last year. A notable feature is the conversion of a significant portion of non-regular logistics center staff to direct employment. This year’s order volume has nearly doubled compared to the previous year, and with the opening of the Gimpo logistics center scheduled for early next year, they have preemptively increased their workforce. The Gimpo logistics center spans 40,000 pyeong, which is more than 1.3 times the current operating area of Market Kurly’s logistics center. With the opening of the Gimpo logistics center, order processing volume is expected to double.

The integrated mall SSG.com, affiliated with the Shinsegae Group, currently has about 700 employees at its headquarters. This number does not include field staff such as picking and packing (PP) center employees. While converting existing employees from Emart and Shinsegae Department Store affiliates, they are also steadily recruiting external personnel. In fact, direct-hire employees from both SSG.com and Emart work at the 'Neo' logistics centers 1 through 3, which are specialized dawn delivery centers equipped with automated facilities. SSG.com is also carefully reviewing construction sites with an eye toward expanding to Neo phase 4.

In contrast to the workforce and facility investment expansion trend among emerging online players, traditional offline giants like Emart and Lotte Mart are struggling. Emart, which had contributed to creating dozens to hundreds of jobs annually, halted new employee recruitment for the first time this year. Lotte Mart closed nine stores in the first half of the year and plans to close a total of 16 stores within the year. As of the end of June, Emart had about 25,600 full-time employees, a decrease of about 200 from about 25,800 at the end of December. This decline is due to natural attrition and workforce transfers among affiliates. Lotte Shopping, including the Lotte Mart division, had about 24,000 employees at the end of June, down more than 900 from about 25,000 at the end of December.

An e-commerce industry official explained, "There is a burden of increased fixed costs, but the overall market is expected to grow about twice as much as last year. In particular, demand for IT technology development personnel is expected to continue, not only for MD positions but also to enhance logistics competitiveness through automated facilities."

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