"How Much Is This?" Searching Only for the Lowest Price... How to Survive in the 'High Inflation Era'

Price Hikes in Common Food Items
Consumers Face Increased Living Expenses
Large Supermarkets and Convenience Stores Launch Successive Ultra-Low-Priced Products

In the midst of high inflation, the competition to sell 'ultra-low-priced chicken' at large supermarkets continues. In August, a chicken price tag was displayed at Emart Seongsu branch in Seongdong-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Intern Reporter Lee Gyehwa] As high inflation continues, prices of staple foods such as ramen, kimchi, and processed foods have been rising one after another, increasing the financial burden on consumers. In response, large supermarkets and convenience stores are continuously launching lowest-price products targeting these items.

Due to the rise in raw material costs, prices are increasing across the board. According to Statistics Korea on the 19th, the consumer price index in August rose by 5.7% compared to the same period last year, down from 6.0% in June and 6.3% in July, which were in the 6% range. Processed foods increased by 8.4%, agricultural, livestock, and marine products by 7.0%, agricultural products by 10.4%, and especially vegetables surged by 27.9% year-on-year.

In this situation, large supermarkets are continuously releasing ultra-low-priced products. This is interpreted as a strategy to reduce consumer burdens in the era of high inflation while increasing customer inflow. Since July, E-Mart has been running the "End of Price" project, supplying 17 processed food items such as milk and kimchi, and 7 fresh food items such as eggs and onions, at the industry's lowest prices compared to large supermarkets and Coupang.

Homeplus started the "AI Lowest Price System" on the 24th of last month, selecting key products weekly and lowering prices to industry lowest levels by comparing them with prices on large supermarkets' online malls. Lotte Mart also evaluates the price levels of about 500 daily necessities in real-time every week and adjusts selling prices accordingly.

The convenience store industry has responded to high inflation by offering ultra-low-priced private brands (PB) and selling small-packaged vegetables at reduced prices.
[Image source=Yonhap News]

Regarding the price increases, netizens are expressing their anxiety through various online communities. One netizen said, "Prices are rising too sharply. I am helpless against the soaring prices," adding, "Shopping has become scary due to high inflation. I am worried that prices will rise even more in the future." Another netizen added, "I think I will only shop by looking for discounts now. Even if it’s inconvenient, I will have to carefully check prices and buy only what is necessary."

Meanwhile, the convenience store industry is no exception. Not only large supermarkets but also convenience stores are launching low-priced products. CU is increasing sales by offering ultra-low-priced instant rice, ramen, kimchi, eggs, and milk through its "Heyroo Deuktem" series. Sales of Vienna Deuktem products (from September 1 to 14) increased by 416.9% compared to the same period last month, beauty tissue Deuktem by 56.3%, kimchi Deuktem by 30.8%, rice Deuktem by 18.0%, and ramen Deuktem by 16.6%.

Seven Eleven launched the "Goodmin Project" targeting consumers shopping at convenience stores, selling products about 10-15% cheaper than general product prices. Eggs, tofu, bean sprouts, and pork belly ranked first in sales, while thinly sliced pork belly ranked second. Sales from September 1 to 14 surged 85% compared to the same period in July.

GS25 also introduced the "Practical Series," lowering prices and increasing weight. Additionally, GS The Fresh’s ultra-low-price private brand "Real Price" kitchen towels and toilet paper are sold at convenience stores, increasing sales by up to about 8.5 times.

Meanwhile, the government plans to prepare measures to stabilize prices amid the rising prices of food products such as ramen. On the 19th, at the Livelihood Price Inspection Meeting held at the Government Sejong Complex, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "The Ministry of Agriculture, Food and Rural Affairs will lead a food price monitoring team to conduct daily monitoring of trends and actively engage in consultations with the industry to stabilize prices."

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