Responding to Changes in Non-Face-to-Face Distribution Environment... Plan to Introduce 800 Units Annually Starting Next Year

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[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 19th that it held the opening event for the 2nd Smart Supermarket at the Nadeul Store inside the Korea Federation of SMEs building in Yeouido, and plans to actively promote the development of Smart Supermarkets as a digital transformation model for small business owners responding to changes in the non-face-to-face distribution environment. A Smart Supermarket is a hybrid unmanned store operated with staff during the day and unmanned at night, introducing smart technologies and equipment such as unmanned entry devices, unmanned checkout counters, and security systems, based on digital management, representing a new neighborhood supermarket model.


Neighborhood supermarkets, with about 50,000 stores nationwide, are a representative low-income business sector struggling to respond to changes in the non-face-to-face digital distribution environment due to lack of capital and information. Also, the current situation is that they are operated by family labor for more than 16 hours a day. In this context, Smart Supermarkets are expected to enhance the self-sustainability of neighborhood supermarkets as a digitalization model for small business owners. Nighttime unmanned operation enables additional sales and contributes to improving the welfare of small business owners by reducing working hours. In fact, Hyeongje Supermarket in Dongjak-gu, the first Smart Supermarket opened in September and currently operating, saw an average daily sales increase of 36% after conversion to a Smart Supermarket, and sales during unmanned late-night hours increased by up to 72%.



Accordingly, the Ministry plans to operate five pilot Smart Supermarket stores this year and to actively foster Smart Supermarkets on an annual scale of 800 stores starting next year. Jo Joo-hyun, Director of the Small Business Policy Office at the Ministry, stated, "Smart Supermarkets are a representative model of digital transformation for small business owners responding to changes in the non-face-to-face distribution environment," adding, "We plan to actively support small business owners, who have been struggling due to COVID-19, to improve sales and achieve a life with evenings off."


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

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