Major supermarkets expand one-hour delivery to target post-Coupang shoppers

(Shinsegae)

As trust in Coupang has weakened following a large-scale data breach, major supermarket chains in South Korea are stepping up efforts to capture online grocery shoppers by strengthening fresh food competitiveness and expanding ultra-fast delivery services.

SSG.com, the online platform of Shinsegae Group, is reinforcing its identity as Emart’s online grocery channel and plans to add more than 30 stores this year to its one-hour delivery service, “Baro Quick.” The company is also expanding reward benefits to attract online demand.

Lotte Mart, meanwhile, is shortening delivery time slots and boosting competitiveness through automated logistics centers, including one set to be completed in Busan this year.

According to industry sources on Wednesday, SSG.com plans to expand Baro Quick — which delivers groceries within one hour from nearby Emart stores — to as many as 90 locations nationwide this year. The service was launched at 19 stores in September last year and expanded rapidly to 60 locations by year-end.

SSG.com also provides overnight and daytime delivery in partnership with CJ Logistics. Since adding Baro Quick last year, the company has been quickly capturing demand for fresh food online.

While major supermarkets have long held advantages in sourcing power and quality control for fresh food, their offline-focused operations had limited online growth. Analysts say the introduction of store-based one-hour delivery has eased these constraints, accelerating online demand for fresh groceries. In November last year, fresh food accounted for 59 percent of Baro Quick orders.

The decline in consumer trust in Coupang has also fueled post-Coupang demand, with shoppers shifting toward supermarket-based online grocery services. Orders for SSG’s weekday delivery service, shipped from Emart stores, rose 20 percent year-on-year during the first 10 days of last month, while order value increased 24 percent.

SSG.com is further strengthening its membership offerings this year to expand Emart’s online customer base. A new membership program, “SSG Seven Club,” offering a fixed 7 percent reward rate — the highest level in the domestic e-commerce industry — will launch in mid-January. Additional benefits include access to the OTT service TVING and coupons for Shinsegae Department Store Mall and Shinsegae Mall.

(Lotte)

Lotte Mart is also focusing on enhancing fresh food delivery competitiveness. The retailer plans to further segment delivery time slots on its online grocery app “Zetta” and build automated logistics centers to improve both speed and processing efficiency. Lotte Mart launched its dedicated online grocery platform “Lotte Mart Zetta” in April last year and currently operates delivery services linked to its nationwide offline store network.

Customers can subscribe to Zetta Pass for 2,900 won ($2.03) per month to receive free delivery on orders of at least 15,000 won. Last month, Zetta Pass was also made available for free to Naver membership subscribers, after which delivery volume rose 20 percent over the following two weeks compared with the previous two-week period.