'Shop in store, get it at home': Why hypermarkets are expanding local delivery

E-mart to roll out free in-store delivery to all branches by year-end

Offline push includes Starfield Market conversions, Wow Shop expansion

Shoppers line up for an early-opening discount event at E-mart's Yongsan branch. [E-mart]

E-mart is expanding a free local delivery service that brings purchases made at its physical stores directly to customers' homes — part of a broader strategy to strengthen the competitiveness of its brick-and-mortar locations by making in-store shopping more convenient.

E-mart has been expanding the free local delivery service this year, according to the retail industry. Under the program, customers who buy products at a store above a set spending threshold can request home delivery. The service launched in October at branches including Mapo and Sindorim in Seoul, Dong-Incheon in Incheon, Suwon in Gyeonggi Province, and Chilseong in Daegu.

Stores offering the service provide free delivery within roughly 5 kilometers for customers who spend 50,000 won ($37) or more. The service is used mainly for heavy or bulky items such as bottled water and rice. Some categories — including fresh, refrigerated and frozen foods, as well as alcohol — are excluded. Delivery is handled through partnerships with third-party logistics providers coordinated at the corporate level.

The service is not new. E-mart has offered local free delivery at select stores since the 2010s but has recently moved to revive and expand it. The company aims to roll out the service to all of its stores in the second half of this year, up from 23 locations as of the first half.

The expansion is driven by a strategy to strengthen offline stores by reducing the burden of grocery shopping and encouraging both first-time and repeat visits. Demand for the service is highest among older customers, homemakers and those without access to a car. "We are expanding the service to broaden customer touchpoints and improve convenience," an E-mart official said.

E-mart has been investing heavily in boosting the appeal of its physical stores. A flagship strategy involves converting existing hypermarkets into Starfield Market — a destination-style format combining shopping, dining, and cultural and leisure spaces — designed to keep customers on-site longer and draw them naturally into grocery shopping.

Interior view of the Wow Shop at E-mart's Wangsimni branch. [Herald DB]

E-mart has opened six Starfield Market locations to date, starting with Jukjeon in 2024, followed by Ilsan, Dongtan and Gyeongsan last year, and Wolgye and Gunsan this year. The company plans to convert its Gwangmyeong Soha branch in December and add two to three more locations, primarily in the greater Seoul area, next year.

E-mart is also expanding Wow Shop, its ultra-low-price household goods concept. The goal is to draw customers into stores by strengthening its non-food offering. In October, the company opened Wow Shop locations of about 330 square meters each at its Starfield Market branches in Wolgye and Eunpyeong, and extended the format to Starfield Market Gunsan. E-mart plans to grow the number of mid-to-large Wow Shop outlets to five in total by year-end.

Lotte Mart does not currently operate a separate delivery service for in-store purchases. However, Lotte Super — its corporate supermarket chain — offers free local delivery to customers who spend 30,000 won or more at its stores.

Lotte Mart is also focused on strengthening its offline stores. It is building up its food credentials through Gran Grocery, a food-specialist store format where roughly 90 percent of products are food items. The chain is also expanding its lineup of ultra-low-price and differentiated products under its private-label brands Oneul Joheun and Yorihada. Private-label sales for the January-to-September period rose 15 percent from the same period last year.

In September, Lotte Mart introduced a "Pilot Kitchen" at its Zettaplex Jamsil branch in Seoul, where customers can evaluate new products before they go on sale. The space lets shoppers sample items still in development and share feedback on taste, composition and price. The initiative is part of a strategy to drive store traffic through food specialization, price competitiveness and expanded in-store experiences.

"In an era when online shopping has become routine, hypermarkets need to give consumers a reason to visit their stores," an industry official said. "The focus is on drawing customers in with differentiated products and experiential spaces, while reducing the inconvenience of offline shopping by strengthening convenience services."

Shoppers browse at the Lotte Mart branch in Jung-gu, Seoul. [Yonhap]

korean@heraldcorp.com