6 out of 10 Consumers Oppose Mandatory Closure of Complex Shopping Malls

[Asia Economy Reporter Kim Hyewon] Among consumers who have experience using complex shopping malls, 6 out of 10 oppose the introduction of mandatory holiday closures for complex shopping malls.

The Korea Chamber of Commerce and Industry announced this on the 25th based on the results of a 'Consumer Awareness and Usage Survey on Complex Shopping Malls' conducted on 1,000 consumers in Seoul and the metropolitan area who had visited complex shopping malls within the last six months.

Complex shopping malls refer to stores that integrate shopping, entertainment, and business functions, serving as cultural and tourism facilities. Currently, the National Assembly is discussing an amendment to the Distribution Industry Development Act that would require complex shopping malls to have mandatory holiday closures twice a month, similar to large supermarkets.

According to the survey, when asked about their stance on business regulations for complex shopping malls, 62.6% of respondents opposed the regulation, while 18.9% supported it.

The most cited reason for opposing mandatory closures was "inconvenience due to inability to shop on weekends (69.6%)." This was followed by "regulations do not help revitalize traditional markets and local businesses (56.7%)," "restriction of consumer choice (53.5%)," "collateral damage to small business tenants due to mandatory closures (26.7%)," and "negative impact on surrounding commercial areas due to decreased visitors (17.6%)."

Only 12.6% Willing to Use Traditional Markets and Local Businesses if Mandatory Closures Are Enforced

If the mandatory closure system is introduced and complex shopping malls cannot be used, only 12.6% responded that they would use traditional markets or local businesses. In contrast, 42.4% said they would revisit the complex shopping mall on days it is open, and 25.5% said they would use other purchasing channels. 19.5% chose to give up shopping.

When asked whether the introduction of business regulations for complex shopping malls would help revitalize local commercial areas, 48.2% responded "it does not help," which was about twice as many as those who said "it helps" (24.2%).

Among those who said they would use other purchasing channels if mandatory closures were enforced, the most preferred alternative channel was online malls (54.5%). This was followed by large supermarkets (23.9%), department stores (15.3%), and supermarkets (4.3%).

If business regulations for complex shopping malls are introduced, the majority (83.6%) preferred weekdays as the appropriate mandatory closure days.

Professor Seo Yonggu of Sookmyung Women's University pointed out, "Due to the impact of COVID-19, the distribution market is rapidly shifting online, increasing difficulties for offline distribution such as large supermarkets and traditional markets. Even with regulations on large supermarkets, small merchants and traditional markets have not revived," adding, "Introducing business regulations for complex shopping malls is excessive."

Mostly Visit on Weekends (77%) with Family (59%)... Average Stay of 2.8 Hours per Visit, Spending 160,000 KRW on Average

The majority of users answered that they mainly visit complex shopping malls on weekends (77.2%) when they have more free time, usually with family (58.6%). The average stay per visit was about 2.8 hours.

The average spending per visit was calculated at 157,000 KRW. The most commonly purchased items were clothing (75.4%), fashion accessories (58.8%), groceries (52.5%), daily necessities (49.1%), cosmetics (22.2%), and books (20.8%), in that order.

Also, 60.4% of respondents said they had experience visiting nearby areas or other surrounding places before or after visiting the complex shopping mall. The places visited included restaurants and coffee shops (76.2%), surrounding commercial areas (40.7%), and famous tourist attractions or local landmarks (28.8%), indicating that complex shopping malls have a certain positive impact on the local economy.

Regarding reasons for preferring complex shopping malls, "being able to handle shopping, dining, leisure, entertainment, and cultural activities all in one place (36.8%)" was the most cited, suggesting that the convenience of completing everything in one location amid busy daily life is a key factor in the popularity of complex shopping malls. This was followed by "pleasant shopping environment (21.6%)" and "variety of brands (13.5%)."

Reflecting this, positive opinions were high in questions about perceptions and attitudes toward complex shopping malls, with 89.7% agreeing that "all shopping is possible in one place" and 84.6% agreeing that the "shopping environment is pleasant." Regarding non-shopping aspects, positive responses were also high for "availability of various food and entertainment options together (88.7%)," "a good place to spend time with family (76.5%)," and "a good place for rest or mood change (75.8%)."

Seo Deokho, Director of the Korea Chamber of Commerce and Industry's Distribution and Logistics Promotion Institute, said, "The competitive relationship between complex shopping malls and local businesses or traditional markets is weak, and small business tenants in complex shopping malls are also policy protection targets. The effects of introducing business regulations are uncertain," adding, "Wisdom is needed to choose innovation and coexistence rather than regulation."

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