"From Dough to Delivery OK"... Large Mart Baking Bread Hits the Mark

Own Brand and Premium Strategy Competition
Homeplus Manufactures Dough and Cakes
SSG.com Delivers 'Saebyeokbbang' Dawn Bread
Lotte Mart Hosts Famous Bakeries

[Asia Economy Reporter Lim Chun-han] The competition among large supermarkets to upgrade their bakery offerings is intensifying. They are launching their own bakery brands and targeting the bakery market with a ‘freshness’ strategy by offering bread baked on the same day.

◆ Large Supermarkets "From Dough to Cakes" = According to Homeplus on the 30th, sales of croissant dough from Montblancier Bakery increased by 55% compared to the same period last year, and frozen dough products grew by 25%. In particular, the sales of the signature red bean bread last month rose by 20% year-on-year, while sales of party cakes and gift items increased by 14% and 35%, respectively.

Homeplus operates a directly managed bakery factory in Anseong, Gyeonggi Province, where employees make bread daily using an in-house artisanal method to produce fresh and high-quality bread. To standardize bread quality, the dough is made at the Anseong factory and baked on the same day at the stores. They also focus on improving quality by immediately reflecting consumer feedback from the stores into product production. The goal is to break the prejudice that bread sold at supermarkets is ‘inferior to professional bakeries’ and ‘not fresh.’ On Homeplus’s online platform, there is a dedicated Montblancier section where customers can order bread made at the stores and receive same-day delivery.

The reason large supermarkets are upgrading their bakeries is that bread demand is rapidly increasing every year, and consumers’ product selection criteria are becoming more discerning. According to the Statistics Korea Household Income and Expenditure Survey, the average monthly household expenditure on bread and rice cakes rose from 22,000 KRW in 2019 to 25,000 KRW last year, and reached 26,000 KRW in the first quarter of this year.

◆ Dawn Delivery and Entry of Famous Bakeries = SSG.com has launched the ‘Dawn Bread’ brand, which means freshly baked bread, and is piloting same-day delivery services. The product lineup includes 10 types such as white bread, croissants, scones, and bagels. Bread is made daily from 7 a.m. at 11 Emart stores including Jayang and Garden Five, with the first delivery starting at 9 a.m. Unlike typically distributed frozen bread, the dough is pre-mixed and cold-fermented at the Emart bakery corner, and baking begins only when the customer places an order. All bread made on the day is sold out the same day, and any leftovers are discarded. An SSG.com official said, "By expanding to Emart stores nationwide in the future, we will surpass competitors in both delivery time and product quality."

Lotte Mart operates brand stores selling bread baked on the same day at over 100 locations nationwide. Recently, they have focused on bringing in famous local bakeries such as Masan Goryeodang’s new brand ‘Bake1959,’ Yangdeok’s ‘Montmartre Bakery,’ and Jinju’s ‘Yang Woo-yeon Bakery.’ Bake1959 at the Samgye branch is popular as a gourmet spot known as one of the top five bakeries in Gyeongnam, with signature items like honey bread and senbei. Montmartre Confectionery at the Yangdeok branch is famous for gang cream red bean bread and croffles. Since entering Lotte Mart, their sales have increased by 3 to 5 times monthly compared to before.

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