"The Second Chicken War, This Time Pizza"…Big Mart Ultra-Low Price Food Competition

"Cheaper Prices Than Franchise Restaurant Menus"
Three Major Hypermarkets Enter Lowest Price Competition

A large supermarket introduced half-price pizza following its half-price chicken offer. The photo shows the pizza sales booth at a large supermarket in Seoul on the 22nd.
[Image source=Yonhap News]

[Asia Economy Reporter Park Hyun-joo] Amid fierce competition in the retail industry's 'half-price chicken battle,' half-price pizza has now appeared. Consumers, who had been reluctant to dine out due to soaring prices, are showing a strong response to affordable food options. Large supermarkets are engaging in ultra-low price competition across various categories, including daily necessities, following food items.

According to the industry, Homeplus is selling a signature pizza, originally priced at 4,990 won, for 2,490 won until the end of this month. Considering that pizza prices at franchise stores easily exceed 20,000 won, this is about one-tenth of the price. Emart is selling 'Emart Pizza,' which can be eaten immediately like franchise pizzas, in the 10,000 won price range.

The food competition in the retail industry started with chicken. Since June 30, Homeplus has been selling one whole 'Dangdang Chicken' for 6,990 won. It is reported that about 460,000 'Dangdang Chickens' were sold over approximately 50 days from its launch on June 30 to the 21st. Emart's '5-Minute Chicken,' sold for 9,980 won, boosted Emart's chicken sales last month by about 26% compared to the same period last year upon its release, and Lotte Mart's 'Hantong Chicken' (15,800 won) sells about 35,000 units monthly on average.

Consumers have paid attention to the affordable prices of large supermarket chicken. Major franchise chicken prices are around 20,000 won, and with delivery fees added, consumers often pay between the mid-20,000 won to 30,000 won range. In contrast, large supermarket chicken can be enjoyed for under 10,000 won, earning praise from consumers who found dining out expensive. As a result, some stores have experienced 'open run' phenomena, where customers rush to the store as soon as it opens to buy chicken.

Foreign media have also taken note of this phenomenon. On the 23rd, Bloomberg reported that Korean consumers are employing various means to cope with the recent sharp rise in prices, highlighting that consumers are lining up to buy low-priced chicken at large supermarkets. The outlet explained that chicken is considered an important food in Korea, with more chicken restaurants than McDonald's outlets worldwide. It also pointed out that chicken prices have risen more steeply than other dining options. Last month, overall food prices rose 8.8% year-on-year, while chicken prices increased by 11.4%. The report also noted that rising delivery fees have increased the price burden on consumers.

Large supermarkets have entered a fierce low-price competition. The photo shows a whole chicken being sold at a large supermarket in Seoul on the 10th.
[Image source=Yonhap News]

Meanwhile, the three major supermarkets have entered a lowest-price competition ahead of the Chuseok holiday. On the 24th, Homeplus announced the introduction of an 'AI Lowest Price System,' which selects 50 'core products' weekly, compares prices across the three major supermarkets' online malls, and lowers prices to the industry's lowest. Core products are selected using big data algorithms from top-selling items with high customer demand, including food and daily necessities.

Emart also launched the 'End of Price' project on the 4th of last month, selling 40 essential items at the lowest prices compared to other major supermarkets and Coupang on an ongoing basis. Additionally, separate from essential items, 500 products are price-managed weekly, with seasonal items that have recently increased in price selected for two weeks of discounted sales. Lotte Mart has been operating a 'Price Stabilization Task Force' since March, focusing on managing about 500 daily necessities that account for the top 30% of sales by category.

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