Consumers Frustrated as 'Large Marts' Again Excluded from Spending Support Locations

Mart Faces Direct Hit on Sales
Consumers Also Complain, "We Have to Try Hard to Find Alternatives"

On the 25th, a notice for the 'Korea Together Sale' was displayed at a large supermarket in Seoul. The Ministry of SMEs and Startups held the large-scale discount event '2021 Korea Together Sale' again this year following last year to overcome the COVID-19 crisis and to help small and medium-sized enterprises and small business owners open new sales channels. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Jo In-kyung, Kim Yu-ri] "They said to take the lead in various domestic demand revival campaigns like the Donghaeng Sale, but once again, large discount stores have been excluded from the usage of the support funds this time."

On the 5th, the distribution industry raised complaints about the exclusion of large discount stores from the usage of the government's Win-Win National Support Fund and Consumption Support Fund. While actively encouraging participation in consumption stimulation activities such as the Donghaeng Sale, large discount stores were excluded from the usage of support funds aimed at boosting domestic demand.

A distribution industry official said, "Since COVID-19, large discount stores have taken the lead in domestic demand revival campaigns and the Korea Donghaeng Sale by minimizing margins," adding, "Excluding large discount stores from the Win-Win National Support Fund as well as the consumption support fund provided in the form of card cashback is highly unfair."

Large discount stores such as E-mart, Lotte Mart, and Homeplus, which were excluded from the usage of this consumption support fund, are once again concerned about a direct hit to their sales. During the first disaster relief fund implemented in May last year, sales at large discount stores dropped sharply by 9.7% compared to the same month the previous year. According to Statistics Korea data, while the overall retail sales index showed signs of recovery in May, large discount stores and department stores saw declines again in June and July.

Suppliers to large discount stores are equally struggling. A representative of a supplier to large discount stores said, "After last year's disaster relief fund, consumption of Korean beef increased significantly, but in the case of large discount stores, livestock sales sharply declined, so only suppliers to large discount stores were hit," adding, "I hope consideration is given to the fact that 70-80% of suppliers to discount stores are agricultural and fishery populations and small and medium-sized merchants." Resistance is also expected regarding whether usage is recognized at small stores within the marts such as clothing stores, optical shops, and food courts.

The inclusion of the Chuseok holiday during the cashback application period, which lasts until October, is also disadvantageous for the marts. A large discount store official said, "There are already concerns about a sharp drop in sales during the Chuseok peak season."

Consumers are also voicing dissatisfaction as they have to search for places where the support funds can be used. Office worker A said, "During the disaster relief fund in May last year, since it could not be used at department stores or marts, usage increased at places like plastic surgery clinics and academies, and the same situation has occurred this time," adding, "In ordinary households, credit cards are most used when purchasing groceries and daily necessities, but by deliberately excluding large discount stores, only unrelated places will benefit."

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