South Korea - News & Analysis

For a second successive quarter, Costco’s performance was impacted by softer sales in big ticket non-food discretionary items. This was partly due to cautious shopping in the ongoing inflationary environment, but also due to tough comparatives where these products performed better than usual in the last two years. Here we look at those results in more detail and highlight five key takeouts. Co...

Aeon grew 4.6% in its overall business with FY ending February 2023, as its operating revenue reaches JPY9,117bn (US$68bn). It saw strong growth in its international business, with double digit growth in most markets through the lifting of pandemic restrictions, providing a strong platform for future growth expansion. Domestic dominates in revenue, overseas notable in profits Aeon achieved ...

Fresh from its first ever quarterly profit in Q3 2022, South Korean ecommerce giant Coupang achieved an unprecedented second consecutive quarterly profit in Q4 2022. Focus on efficiency and superior offerings As we had reported after Coupang’s first ever quarterly profit in Q3 2022, its success can be attributed to its efficiency drive and ability to stand out from competitors through its...

South Korean ecommerce giant Coupang turned a profit for the first time, which is notable in the ultra-competitive and cost-heavy ecommerce industry. It did so through providing shoppers with a superior product range and service, and incorporating technology to improve cost efficiency. Profitability for the first time Coupang announced a 10% revenue increase to US$5.1 bn in the quarter endi...

Retail technology provider Ocado entered into an exclusive partnership with Lotte Shopping, the ecommerce arm of conglomerate Lotte Group. The partnership is aimed at boosting Lotte’s online grocery presence in Korea. Integrated platform for online shopping As part of the collaboration, Lotte plans to build six Customer Fulfilment Centres (CFCs) by 2025. These centres will use the Ocado Sma...

Costco’s fourth quarter results revealed a strong finish to the year with total revenue exceeding $220 bn. We look at the factors underlying this performance and what to expect in the year ahead. Fourth quarter and full year key numbers Q4 total revenue up 15.2% to $70.8 bn, with full year revenue up 16% to $222.7 bn Comparable sales for the quarter (ex-fuel and currency impacts) up 1...

With coffee consumption in South Korea nearly triple the global average, and an estimated one coffee shop for every 600 people in the country, the market offers great inspiration for the latest coffee trends and innovations. Here’s three things that caught our eye on a recent visit to Seoul. Robots at the ready Dilly was one of a variety of service robots we spotted in Incheon Internatio...

While the landscape of labour shortages and rising costs varies across the region, convenience retailers are experimenting with a range of new solutions to tackle their resource challenges. Robots employed to restock at FamilyMart FamilyMart has partnered with start-up Telexistence to introduce stock-checking robots to 300 stores in Japan. The Japan Times reports that each robot can repla...

Co-working spaces, hybrid stores with additional services, and range evolution: three ways leading Asian convenience operators are adapting to meet changing shopper needs as markets emerge from Covid-19. 1. Co-working spaces 7-Eleven in Taiwan has introduced private working spaces above one of its stores in Taoyuan, reports Focus Taiwan. Rates of NTD 100 (USD 3.4) per hour mean the 14 rooms...

Lotte axes its overnight delivery service for online groceries to prioritise its same-day proposition. Competitor Homeplus reports triple digit growth in its one-hour service in the first quarter of this year.   Lotte ditches overnight deliveries From mid-April, Lotte ceased offering overnight delivery for its online groceries, instead focusing on its two-hour same day slots, reports Aju ...