[Edaily Reporter KYUNG GYEYOUNG ] The hypermarket industry, which has been restructured into a two-player market, saw a significant improvement in earnings in the third quarter. This was due to the Chuseok holiday—a peak shopping season—falling in September, as well as the waning impact of the “livelihood recovery consumption coupons,” which had worked against hypermarkets last year. It is also believed that the results partially reflect windfall gains resulting from the decline in business at Homeplus, which is facing financial difficulties.

According to disclosures by each company on the 11th, E-MART Co., Ltd.(139480)reported third-quarter standalone total sales of 5.104 trillion won, an 11.1% increase from the same period last year, surpassing the 5 trillion won mark for the first time in history. Operating profit rose 46.3% year-over-year to 166 billion won. Looking solely at E-MART Co., Ltd.’s discount store division (large supermarkets), total sales reached 3.2626 trillion won and operating profit reached 90.8 billion won, up 9.9% and 63.6%, respectively, compared to the same period last year.

LOTTE SHOPPING CO., LTD.(023530) Lotte Mart, another discount store division, also saw domestic sales of 1.1502 trillion won and operating profit of 17.9 billion won, up 16.2% and 725.5%, respectively, compared to the third quarter of last year. Despite the initial cost burden associated with the launch of the “Zeta” Smart Center, its operating profit margin rose by more than 1 percentage point.

Looking at same-store sales growth rates, E-MART Co., Ltd.’s discount store division recorded 10.6%, while Lotte Mart reached 18%. The sales growth at these hypermarkets was driven by the fact that the Chuseok holiday, which fell in early October last year, was moved up to late September this year. Demand that had previously been dispersed to convenience stores and traditional markets due to last year’s “Livelihood Recovery” consumption coupons also shifted back to hypermarkets.

In addition, the decline in Homeplus’s operations presented an opportunity for its competitors. As Homeplus—which is currently undergoing corporate rehabilitation proceedings—struggles to maintain normal operations due to financial difficulties and has closed some stores, customers have shifted to nearby large supermarkets. It is reported that sales at large supermarkets adjacent to closed Homeplus stores have increased by around 10%.

Whether this growth trend will continue into the fourth quarter appears to depend on whether the company can capture year-end demand. E-MART Co., Ltd. announced today that its discount store division’s total sales for October were 964.9 billion won, a 5.0% decrease from the same month last year, while same-store sales also fell by 5.7% over the same period. The absence of the Chuseok holiday period led to a contraction in overall sales. However, when E-MART Co., Ltd.’s total sales for September and October are combined, they increased by 3.4% compared to the same period last year. This makes it difficult to conclude that the growth trend has slowed.

The hypermarket industry is focusing on strengthening consumer touchpoints both online and offline. E-MART Co., Ltd. plans to renovate existing stores and open new locations in the Chungcheong region, while simultaneously strengthening its core product and private label (PL) strategies and expanding last-mile delivery services. Lotte Mart also plans to continue growing its business and improving profitability by bolstering product categories that see a surge in demand toward the end of the year, including ready-to-eat meals.

Lee Eun-hee, Professor Emeritus of Consumer Studies at Inha University, stated, “While there may be some spillover benefits from Homeplus, ultimately, the competition for large supermarkets comes from e-commerce,” adding, “They must be able to offer competitive products, convenient delivery, and benefits unique to offline shopping to encourage consumers to shop at large supermarkets.”