[Edaily Reporter Park Sun-Yeop ] Although the government is considering a plan to allow early-morning deliveries by large supermarkets, analysis suggests the impact on actual sales and profits will be limited. It is assessed that the mandatory two-day-a-month closure has a far greater impact on large supermarkets’ performance than regulations on early-morning deliveries.
In a report released on the 22nd, Park Jong-dae, an analyst at Hana Securities, stated, “Even if early-morning delivery by large supermarkets resumes, there are limits to how much it will lead to a meaningful increase in sales,” and maintained his “overweight” recommendation for the retail sector.

The government is considering including measures to relax operating hour restrictions on large supermarkets in the 6th Basic Plan for the Development of the Retail Industry. Currently, early morning deliveries are permitted only through logistics centers separate from supermarket stores, such as “Neo,” the online logistics center operated by E-MART Co., Ltd.(139480).
However, it has been pointed out that early-morning delivery is more costly than regular delivery, making it difficult to turn a profit without securing sufficient transaction volume. Of E-MART Co., Ltd. SSG.com’s annual transaction volume of approximately 6 trillion won, early-morning delivery accounts for only about 8%. Lotte Mart suspended its early-morning delivery service in April 2022, judging it to be unprofitable.
Researcher Park explained, “Unless they are strategically willing to absorb losses to expand market share, there is little reason for large supermarkets to actively expand early morning delivery.”
The analysis concluded that mandatory closure regulations have placed a greater burden on large supermarket chains’ performance than early-morning delivery. Since 2012, when the mandatory closure on two holidays per month was fully implemented, the growth rate of existing large supermarket stores has fallen by about 5 percentage points, and annual operating profits per company are estimated to have decreased by more than 50 billion won. Although holiday sales are 1.6 times higher than on weekdays, more than 70% of E-MART Co., Ltd. and LOTTE SHOPPING CO., LTD. stores still close on two holidays each month.
The expansion of online consumption and the penetration of the food market by online retailers such as Coupang and Market Kurly have also exacerbated the slump in performance. The share of the overall retail market held by large supermarkets peaked at 9% in 2011 and fell to 7% last year. E-MART Co., Ltd.’s discount store operating profit also fell to 86.7 billion won last year, down to one-tenth of its 2011 level. E-MART Co., Ltd.’s return on equity (ROE) on a standalone basis stood at just 0.53%.
Recent operating conditions are showing clear signs of recovery. According to Hana Securities, same-store sales at E-MART Co., Ltd. and Lotte Mart were found to have increased by around 15% year-over-year through the 20th of this month. This is attributed to favorable consumer sentiment, coupled with the spillover benefits resulting from the suspension of operations at approximately 100 Homeplus stores.
Sales at large supermarkets located near Homeplus stores rose by more than 10%, contributing to an increase of approximately 4 percentage points in the overall same-store growth rate. A base effect also played a role, as consumer spending had contracted ahead of the distribution of consumer coupons last July.
Researcher Park predicted, “Although the comparison base will rise as we approach the end of July, the same-store sales growth rate could reach over 10%,” adding, “The same-store growth rate for large supermarkets in the third quarter is likely to rise significantly.”