"Franchise Chains Will Feel the Pressure"…Foreign Media Highlights Koreans Lining Up to Buy 'Mart Chicken'

Bloomberg Highlights How Koreans Cut Grocery Costs Amid Inflation
Homeplus, E-Mart, Lotte Mart Engage in 'Low-Price Chicken War'
"Uncertain If It Will Truly Help Stabilize Prices"

Amid ongoing competition among large supermarkets to sell 'ultra-low-priced chicken' during high inflation, citizens are lining up to buy chicken at an Emart branch in Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Jung-wan] Foreign media have also taken notice of South Korea's ultra-low-priced chicken craze. It is analyzed that rapid inflation has caused this phenomenon.

On the 23rd (local time), Bloomberg reported that Koreans, coping with recent rapid price increases, are employing various means to reduce food purchasing costs and are striving to buy chicken at discounted prices.

When Homeplus, South Korea's second-largest supermarket chain, introduced 'Dangdang Chicken' priced at 6,990 won?about one-third the price of famous franchise chicken?Bloomberg reported that consumers lined up even before the store opened.

Recently, while low-priced chicken from major supermarkets is gaining popularity, foreign media have also focused on this ultra-low-priced chicken craze in Korea.

After Homeplus first launched the 6,990 won 'Dangdang Chicken' on June 30, other large supermarkets such as Lotte Mart and E-Mart also introduced ultra-low-priced chicken. The price of chicken sold at these large supermarkets is about one-third of the price of existing franchise chicken.

Bloomberg explained that South Korea has more chicken restaurants than McDonald's outlets worldwide, and chicken is a very important ingredient in Korea.

It also pointed out that chicken prices have risen more steeply than other foods in Korea this year. Last month, overall food prices rose 8.8% year-on-year, but chicken prices increased by 11.4%. Additionally, higher delivery fees after the COVID-19 pandemic have also become a burden for consumers.

Homeplus stated that the sale of Dangdang Chicken is not a temporary discount and that they intend to maintain the current price. However, Bloomberg noted that it is uncertain whether the ultra-low-priced chicken phenomenon, which started as Homeplus's 'price stabilization project,' will actually help stabilize prices. Since the launch of Dangdang Chicken, Homeplus has sold about 460,000 chickens. In terms of amount, this is about 3.2 billion won, which is not a large share compared to the estimated nationwide monthly chicken sales of about 610 billion won.

Nevertheless, Bloomberg reported that Koreans hope that the low-priced chicken from large supermarkets will influence franchise chicken prices as well. Lloyd Chan, an economist at Oxford Economics (OE), said, "Chicken franchise companies must be feeling strong pressure to lower prices or at least not raise them any further."

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