Supermarket deli offerings on high demand amid rising chicken prices

[Courtesy of GS Retail Co.]

South Korean consumers are turning to grocery delis that offer chicken menus at a more affordable price of about 10,000 won ($7.3) amid soaring prices at franchise chicken restaurants.

According to industry sources on Monday, supermarket chain GS The Fresh has seen a significant increase in deli sales in the first quarter of this year, up by 28 percent compared to a year ago.

This surge is attributed to the skyrocketing prices of franchise chicken, with some reaching nearly 30,000 won, prompting consumers to opt for supermarket-made chicken instead.

GS The Fresh offers a variety of deli items, including chicken, skewers, fried foods, and kimbap, with over 70 different options available.

The top five deli items in terms of sales are the Rice Crunch Chicken (15,900 won), Neighborhood Chicken Pieces (13,800 won), Secret Boneless Chicken (14,800 won), Choose Your Own Skewers (a set of 3 skewers for 7,900 won), and Shrimp Tempura (7,900 won).

Supermarket-cooked chicken, priced lower than franchise chicken delivery, combined with various discount events, has attracted consumers’ attention.

The trend of half-priced chicken, which began around a decade ago in large discount stores like Lotte Mart and Homeplus, has now extended to neighborhood supermarkets.

Given the convenience of supermarkets located closer to residential areas, a wide range of consumers, from families to single-person households, are opting for convenient ready-to-eat food items.

Recently, Goobne Chicken raised the prices of nine chicken products by 1,900 won each. Its flagship menu item, Spicy Chicken, increased from 18,000 won to 19,900 won, while the Original Chicken rose from 16,000 won to 17,900 won.

Similarly, Popeyes raised the prices of its chicken and other items by an average of 4 percent.

Franchise chicken brands such as Kyochon Chicken and BHC, which raised prices last year, now hover over 20,000 won, approaching 30,000 won when using delivery services.

Not only chicken but also fresh food items like meat and fruit, which are staples in supermarkets, have seen price hikes, prompting customers to turn to deli menus.

According to GS The Fresh, sales of fresh sashimi increased by 48 percent in the first quarter of this year.

“The main customers for deli items and fresh sashimi are those aged between 30 and 40, accounting for 60.1 percent of total customers, indicating a preference among young couples and single-person households for cost-effective, convenient food options available in supermarkets,” said an official from GS The Fresh.

The demand for supermarket deli items, particularly among one to two-person households and working individuals, has seen a significant surge.

Deli sales at Homeplus Express have skyrocketed by 152 percent in the first quarter of this year compared to a year ago.

Similarly, sales of fresh food, including deli items, at Emart Everyday have increased by about 10 percent in the first quarter of this year.