[Edaily Reporter SHIN MIN JOON ] Daiso, a discount store specializing in household goods, is expanding its offline store network. This is because the range of products Daiso carries is expanding beyond household goods to include beauty, fashion, and health supplements. The ongoing trend of high inflation in South Korea is also working in Daiso’s favor.

According to the retail industry on the 6th, Daiso opened the NC Gangseo Store, a new large-scale store spanning over 500 pyeong, on the 5th. Since the beginning of this year, Daiso has opened a series of new large-scale stores, including the Gangneung Songjeong Store, the Lotte Mart Busan Store, and the Starfield Village Paju Unjeong Store. This is because large-scale stores can secure more space than regular stores and have relatively well-developed infrastructure, such as parking facilities.

Daiso’s shift toward larger stores is also linked to the expansion of its product lineup. Daiso currently sells approximately 30,000 different products. In particular, the company is broadening its product range beyond its traditional focus on household goods to include beauty, fashion, and health supplements. While Daiso initially focused on selling sheet masks and cosmetics, it is now expanding its beauty product lineup to include skincare and color cosmetics.

In the beauty sector, not only small and medium-sized enterprises (SMEs) such as CLIO Cosmetics Co., Ltd(237880) but also large corporations like AMOREPACIFIC CORPORATION(090430)and LG H&H(051900) are joining the fray. The beauty product lineup expanded from about 80 brands and 500 items in 2024 to about 120 brands and 1,420 items last year. As of last July, the beauty product lineup stood at about 140 brands and 2,100 items.

The same is true for fashion items. Daiso is diversifying its product lineup by focusing on so-called “basic items”—such as cooling clothing, fleece, and innerwear—that are not tied to specific trends. The fashion product lineup expanded from about 300 items in 2024 to about 700 last year, and as of last July, it had grown to about 1,100 items. In the case of health supplements, sales began with three suppliers in February of last year and expanded to about 20 suppliers offering over 180 varieties by last July.

As the product lineup expands, related sales are rising accordingly. Daiso’s cumulative sales of beauty and fashion products for the first half of this year increased by approximately 140% compared to the same period last year. Compared to last year’s growth of about 70% year-over-year, the rate of increase this year has nearly doubled.

The reasons behind this growth in performance are attributed to consumers’ tightening budgets due to persistently high inflation and improvements in product quality. The domestic consumer price inflation rate continues to soar, exceeding 3%. According to the National Data Agency, the consumer price inflation rate in August stood at 3.1%. This represents a 0.3 percentage point increase from the previous month’s 2.8%, marking a return to the 3% range for the first time in two months.

Daiso is steadily increasing the number of its stores, including large-format locations. The number of Daiso stores in South Korea rose from 1,576 in 2024 to 1,610 last year. Annual revenue also increased by 14.3%, from 3.9689 trillion won in 2024 to 4.5363 trillion won last year.

As its product range and sales volume grow, Daiso is also accelerating the expansion of its logistics infrastructure. Daiso is constructing new logistics centers in Sejong and Yangju. The Sejong Hub Center and Online Center are scheduled for completion in February of next year, while the Yangju Hub Center is slated for completion in January 2029. The Sejong Hub Center will handle logistics for both brick-and-mortar stores and Daiso Mall. The Yangju Center is expected to support product supply to the northern Seoul metropolitan area.

A Daiso spokesperson said, “Customers who visit Daiso tend to prefer large stores and a wide variety of products,” adding, “Daiso plans to continue introducing large stores and a diverse product lineup to provide customers with an enjoyable and memorable shopping experience.”