Four Retail Issues in Korea 2009

An after effect of a shrinking economy, the customer's practical purchasing and intention to goal purchasing will deepen.

So for next year 2009, small supermarkets or convenience stores will have high growth than department stores or big discount shops.


Ready to eat food that can be cooked easily at home and DIY-related products will report high growth.


Shinsegae Distribution Industry Institute reports "2009 Retail Forecast."
They nominate the 4S such as Shopping Center, Small Format, Save Household and Supporting Home-made.

*Shopping Center era comes.

Before, department stores and big outlet markets open in different places in Korea.

But next year "Timesquare" will open at Yongdongpo in Seoul Metro.

"Timesquare" has department stores, big outlet markets, shopping malls, and culture-entertaiment facilities.

Timesquare   

Global SPA (Specialty Store Retailer of Private Label Apparel) companies grow in high market share in shopping malls as a base.

And fashion brands who have shops in department stores will launch other brands for shopping centers.

*Small Format Shops grow high.

Customers have a strong tendency of short distance consumption propensity and a small quantity purchasing.

New style shops will come as convenience stores with fresh food with a size of 200-500㎡.

*Grab Save Household

Household consumption expenditures down in 2009 bring lower price marketing.

One-dollar items or Private Label items for retailers share more markets.

*Supporting Home-made

To reduce living expenses, customers buy more ready to eat food and DIY items.