Thirteen years have passed since the implementation of the mandatory closing system for large supermarkets aimed at protecting traditional markets, but research results indicate that the effects on revitalizing traditional markets have been minimal.
Consumers who prefer large supermarkets stated that even if these stores close, they would use online purchases or shop on other days instead of going to traditional markets.
The Korea Economic Research Institute (KERI) noted on the 15th that, after analyzing 1.3 million cases of consumer purchase data annually, consumer spending at traditional markets did not increase on the closing days of large supermarkets.
Analysis of grocery purchases over weekends in 2022 revealed that the average grocery purchase amount at traditional markets on the mandatory closing days of large supermarkets (Sundays) was 6.1 million won, lower than the 6.3 million won spent on Sundays when large supermarkets were open.
Comparing the average grocery purchase amounts on the mandatory closing days of large supermarkets in 2015 and 2022, spending at traditional markets decreased by 55% (from 13.7 million won to 6.1 million won), while online mall purchases increased more than 20 times (from 3.5 million won to 81.7 million won).
In 2022, the grocery purchase amounts for offline retail, including large supermarkets, traditional markets, and supermarkets, decreased compared to 2015. Researcher Yu Min-hee explained, "Large supermarkets and traditional markets can be seen as complementary distribution channels rather than competitors."
As consumer purchasing patterns shift from offline to online, the sales index for large supermarkets decreased from 114.2 in the first quarter of 2011 to 92.0 in the fourth quarter of 2024. In contrast, the online shopping sales index surged from 21.8 in the first quarter of 2011 to 135.3 in the fourth quarter of 2024, surpassing large supermarket sales starting in 2020.
As a result, the sales and operating profits of the three major large supermarkets have consistently declined, and in the past ten years, 52 large supermarkets and 202 corporate supermarkets (corporations) have closed, deepening the overall recession in offline retail.
Researcher Yu argued, "As online shopping replaces large supermarkets and the center of consumption shifts online, regulations on large supermarkets could accelerate the contraction of the offline retail market by converting more consumers to online shopping."
He stated, "If the effects of the mandatory closing policy are minimal, we should boldly improve or seek alternatives," and emphasized that establishing a distribution ecosystem where online, large supermarkets, and traditional markets can grow together is urgently needed.