[Edaily Reporter Han Jeon-jin ] E-MART Co., Ltd.(139480)is kicking off the expansion of its own fixed-price household goods brand, “Wow Shop.” The company is moving beyond its existing format of in-store corners—typically around 66 square meters (20 pyeong)—to open its first standalone store spanning 337 square meters (102 pyeong). As E-MART Co., Ltd., which has long relied on Daiso as a key tenant, steps up efforts to cultivate its own brand, observers speculate that the company may be seeking to reduce its dependence on Daiso; this is expected to bring subtle changes to the symbiotic relationship between the two companies.

◇A Bold Move with a 100-Pyeong “Wow Shop”… Complete with Dedicated Checkout Counters
According to industry sources on the 15th, E-MART Co., Ltd. relocated and expanded the Wow Shop at its Eunpyeong branch on the 7th, moving it from its previous location on the 3rd floor (62.8 square meters, or 19 pyeong) to the 6th floor (337 square meters, or 102 pyeong). This marks the first time the Wow Shop has been presented as a large, standalone store. It occupies a prime location on the floor alongside dining establishments such as the family restaurant on the 6th floor. Currently, Wow Shop operates in 13 stores nationwide, with the Eunpyeong branch being the largest. E-MART Co., Ltd. stated, “We expanded the Eunpyeong branch’s Wow Shop as part of a renovation due to positive customer feedback,” adding, “We may consider expanding the floor space at other stores as well, depending on conditions.”

Wow Shop is a specialty brand for ultra-low-priced household goods launched by E-MART Co., Ltd. last December. It sells items at fixed prices ranging from 1,000 to 5,000 won, including kitchenware, storage solutions, bathroom items, cosmetics accessories, stationery, and seasonal goods. Although it carries a product lineup similar to Daiso, which emphasizes price competitiveness, it is attempting to differentiate itself through direct sourcing from overseas and in-house merchandise planning (MD). Its expansion is rapid, with the number of stores more than tripling in just over six months since its launch.

The Wow Shop at the Eunpyeong branch has moved beyond its previous small-scale location—a corner of the third-floor home goods section—to become a standalone store. It has been designed as a distinct brand space, featuring yellow price tags, a dedicated signboard, and category signs prominently displayed throughout the store. It is also notable that the store has been organized like a specialty shop, with separate sections for product categories such as storage containers, tableware, beauty accessories, toys, and slippers. It even has its own dedicated checkout counters. The impact of the expansion has been significant. According to E-MART Co., Ltd., since the expansion, average weekday sales at the Eunpyeong branch’s Wow Shop have increased by 52.1%, and weekend sales have risen by 78.4%.

Industry observers believe that this scaling up of Wow Shop signifies more than just a simple store expansion. Currently, E-MART Co., Ltd. has brought Daiso into 38 of its 131 stores nationwide. While Daiso has established itself as a flagship tenant with excellent customer-drawing power, the structure of the market meant that Daiso captured the majority of the demand for fixed-price household goods. Analysts suggest that the expansion of Wow Shop is a strategy to cultivate its own ultra-low-price brand and directly capture that demand.

◇Tenants as Power Players… Laying the Groundwork to Move Away from Daiso in the Long Term
In fact, Daiso’s presence is growing steadily. Following last year’s sales of 4.5363 trillion won, Daiso is poised to surpass 5 trillion won this year. This is because fixed-price shopping has established itself as a trend amid the economic downturn. Some analysts suggest that Daiso, along with Olive Young and Musinsa—collectively known as “Ol-Da-Mu”—is gaining a presence that surpasses even E-MART Co., Ltd. This is cited as one of the reasons E-MART Co., Ltd. is accelerating the development of its own fixed-price brand.

Some analysts suggest that E-MART Co., Ltd. is laying the groundwork with the long-term goal of “moving away from Daiso.” The Eunpyeong branch, where the large Wow Shop has recently opened, does not have a Daiso store. It appears that E-MART Co., Ltd. will accelerate the expansion of large Wow Shops, focusing on stores where Daiso is not currently present. Furthermore, there is speculation that E-MART Co., Ltd. will enhance the competitiveness of Wow Shops even in stores where Daiso is already present, preparing to go head-to-head with Daiso. There is also growing interest in whether Wow Shops will eventually branch out on their own, similar to Nobland International Inc., and open standalone stores outside of E-MART Co., Ltd. locations.

Of course, there are many hurdles to overcome. Daiso has effectively dominated the household goods market with its network of over 1,600 stores nationwide. E-MART Co., Ltd. also has a precedent: it previously launched the variety store “Piero Shopping,” only to withdraw after just two years due to pressure from Daiso. Securing ultra-low-price sourcing capabilities on par with Daiso is cited as a key challenge. Since the sourcing structure differs from that of traditional hypermarkets, how quickly E-MART Co., Ltd. can establish this capability is expected to determine its success or failure.

A retail industry official stated, “Coexisting with Daiso while simultaneously growing its own brand signifies a desire to take the initiative,” adding, “From E-MART Co., Ltd.’s perspective, there is ample incentive to cultivate its own ultra-low-price brand rather than relying on external tenants.” The official further predicted, “If the expansion of Wow Shop is not a one-time event but spreads to individual stores, it will bring about significant changes in the household goods strategies of large supermarkets.”