Sales of warehouse stores rise amid high dining-out costs


Warehouse stores in Korea, such as Traders Wholesale Club and Lotte Mart Maxx, have experienced a surge in sales due to the growing preference for cooking at home over dining out. This shift in consumer behavior is driven by the lower prices and bulk sizes of fresh ingredients offered by these warehouse stores. In the first few months of the year, Traders Wholesale Club saw an 8.6 percent increase in sales, while its counterparts, E-mart's discount and No Brand stores, experienced declines of 1 percent and 7.8 percent, respectively. Similarly, Lotte Mart Maxx reported a 10 percent sales increase compared to the same period last year, outperforming other stores under the Lotte brand. The rise in sales at warehouse stores can be attributed to the escalating prices of dining out in Korea, which have been steadily increasing for the past three years. Consumers are finding the bulk products offered by warehouse stores more attractive due to their price competitiveness, with prices averaging 10 to 15 percent lower than those at traditional discount stores. Traders and Maxx have announced plans to expand their store numbers in response to the growing trend, and market analysts predict that the size of Korea's warehouse discount store market will surpass 9 trillion won for the first time this year. Additionally, Costco Korea reported a 9.6 percent increase in sales in 2023, further indicating the growing popularity of warehouse stores in Korea.


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