"Joining Price Stabilization" Large Mart Chains Launch Month-Long 'Discounts'

[Asia Economy Reporter Yuri Kim] As prices continue to soar, especially for agricultural and livestock products, the burden of grocery prices persists. Amid ongoing government-wide efforts to stabilize prices, major supermarkets also plan to actively participate in various events throughout May aimed at price stabilization.

◆Government Urges Distribution Companies to Strive for Price Stability

According to the April Consumer Price Trends report from Statistics Korea on the 6th, consumer prices rose by 2.3% compared to the same month last year, marking the largest increase in 3 years and 8 months. Prices of agricultural and livestock products such as green onions and eggs have peaked and are showing some signs of stabilization, but they still remain high due to poor crop yields and the impact of avian influenza (AI). Prices of various imported agricultural, livestock, and seafood products are also high, causing dining table prices to rise sharply. The perceived inflation rate felt by low-income groups, who have a high proportion of food consumption, is much higher. In response, the government has taken measures such as lowering loan interest rates for raw material purchases by food companies.

During an on-site inspection on the 4th, it was noted that "prices of major agricultural and livestock products have fallen by up to 40% compared to March," but "given the challenging price conditions in the second quarter and the impact of dining table prices on people’s livelihoods, distribution companies need to put more effort into price stabilization through discount sales and other means."

Major supermarkets have announced their intention to actively respond to government policies aimed at price stabilization. E-Mart, Lotte Mart, Homeplus, and other large supermarkets typically select discounted items from Thursday for a week-long event. Since the beginning of the year, with prices soaring, discounts are focused on items with sharp price increases. In particular, due to the notable price increases of eggs and green onions, discounts on fresh foods including these items are being emphasized. In May, as seasonal consumption such as family gatherings and camping increases, they are also actively offering discounts on livestock products accordingly.

◆Discount Events Throughout the Month

This weekend marks the family month centered around Parents’ Day, so discount events on vegetables, fruits, seafood, and livestock products will continue. Homeplus will offer discounts on major agricultural products for weekend membership customers. On the 7th, 10,000 bundles of domestically grown soil-grown green onions will be sold at 4,000 won per bundle, discounted by 2,000 won from the regular price of 6,000 won. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), as of the 4th, the average retail price of 1kg of green onions was 5,357 won, so this sale price is more than 1,000 won cheaper than the market price. Homeplus explained that since this event aims to reduce consumer burden, purchases are limited to two bundles per person to ensure benefits reach as many people as possible.

Coupon discount events such as ‘Let’s Discount Korean Agriculture’ and ‘Korea Seafood Grand Sale,’ conducted jointly with the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries, will also be held. From the 6th to the 12th, fresh special eggs and first-grade large eggs (30 pieces) will be sold at 5,560 won each (regular price 6,950 won). Without applying consumer coupons, the price as of the 4th was 7,288 won. The eggs in the event are also limited to one tray per person.

E-Mart will hold a fixed-price event from the 6th to the 12th, selling 700g of first-grade Korean beef sirloin for grilling at 54,800 won. This equates to 7,829 won per 100g. Considering that the average retail price of 100g of first-grade Korean beef sirloin was 10,335 won as of the 4th, this is about 2,500 won cheaper. E-Mart is also running promotions on seasoned pork jumuluk (100g) at 990 won and Jeju chamjogi (10 fish) at 9,900 won.

Lotte Mart is offering up to 40% discounts on all Australian clean Wagyu products for L.Point members. Australian Wagyu upper sirloin (100g, refrigerated) is sold at a 40% discount for 4,260 won, and Wagyu soup cuts and bulgogi (each 100g, refrigerated, Australian) are sold at a 30% discount for 2,380 won. U.S. oranges (12?15 pieces) are priced at 9,980 won, and ‘A Whole Basket of Zespri Gold Kiwi (New Zealand)’ is available for 13,800 won.

Meanwhile, the recent ‘lowest price competition’ triggered by E-Mart is also analyzed to be contributing to price stabilization. A distribution industry official said, "After E-Mart introduced a lowest price guarantee system, Lotte Mart responded with a fivefold point accumulation on the lowest price, intensifying price competition," adding, "Major supermarkets also face the burden of setting similar prices, which ultimately helps minimize the burden of sharply rising prices."

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