Lotte to attempt spurt in e-commerce race via 2-hr delivery from grocery network – Pulse by Maeil Business News Korea – Pulse News
Summary
[Photo by Han Joo-hyung]
Lotte ON, the online shopping mall under South Koreas retail giant Lotte Shopping Co., will offer two-hour grocery delivery service to across the country by making use of Lottes expansive big-box store network to better catch up with online e-commerce players Naver Corp. and Coupang Inc.
Lotte Shopping on Sunday announced it would be servicing two-hour deliveries across the nation next year from its grocery outlets that so far had been restr…….
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[Photo by Han Joo-hyung]
Lotte ON, the online shopping mall under South Koreas retail giant Lotte Shopping Co., will offer two-hour grocery delivery service to across the country by making use of Lottes expansive big-box store network to better catch up with online e-commerce players Naver Corp. and Coupang Inc.
Lotte Shopping on Sunday announced it would be servicing two-hour deliveries across the nation next year from its grocery outlets that so far had been restricted to 21 stores in the capital area and some parts of Gwangju city.
Lotte Shopping plans to open four more immediate delivery service stores in Dongrae, Chuncheon, Ulsan, and Ansan, by January next year to raise the total to 25 stores, which account for 35 percent of its stores that offer online delivery service.
Lotte Shopping plans to expand the number to 50 stores next year to account for 70 percent of total online service stores for customer convenience.
Lotte Shopping will make use of its large discount store chain Lotte Mart as a small distribution center. The stores will become hybrid type outlets that enable consumers to shop grocery while at the same time play the role of a warehouse for online orders.
In August, next year, Lotte Shopping is expected to renew its spacious Lotte Mart outlets in Osan and Busan. The retailer plans to dedicate one whole floor optimized for online delivery.
Lotte ON said that Lotte Marts Gwanggyo outlet that launched the industrys first immediate delivery service has seen its number of online orders sevenfold from 100 in April last year to about 700 recently.
The company said leveraging on Lotte Mart stores across cities would be its competitive strength to reach home consumers.
Lotte Shoppings move comes as it struggles behind the heavy competition in the e-commerce.
Online-based e-commerce players like Coupang, Market Kurly, and Oasis Market have spurted in the race through fast delivery services like Rocket Delivery and overnight Saetbyul Delivery.
Shinsegae Group is also using its large discount store chain Emart as delivery space to expand market share of its online platform SSG.com. Currently, 110 Emart stores across the country are used as locations to sort out online orders. Products are collected and packaged for delivery.
SSG.com also launched operations of its large-scale Picking & Packing (PP) Center at Emart branch in Icheon in September after refurbishing construction. The retailer operates five large-scale PP Centers that can process more than 3,000 online orders, and it plans to expand the number to more than 30 by the first half of next year.
̹ Ȯ Fresh food category has seen its penetration grow in online market in recent years. The 17 trillion won ($14.3 billion) online fresh food market with 15.4 percent penetration rate in 2019 has grown more than 50 percent last year from the previous year to reach 25 trillion won. Its penetration rate has jumped to 21.3 percent.
Coupang has been expanding …….
Source: https://pulsenews.co.kr/view.php?year=2021&no=1087771