Shinsegae, CJ forge all-round partnership to beat retail rivals


South Korea's retail giants Shinsegae Group and CJ Group have agreed to collaborate on logistics and retail operations in order to compete with both domestic and international rivals. The partnership, formalized through a memorandum of understanding, will primarily focus on leveraging CJ Group's nationwide logistics network to enhance the e-commerce platform of Shinsegae Group, particularly Gmarket. CJ Logistics will take charge of delivering goods sold on Gmarket, aiming to extend the time frame for next-day shipping orders beyond the current system's limitations. Additionally, CJ Logistics will oversee the overall distribution system of Shinsegae's online shopping platform SSG.com, including its logistics centers in Gimpo and Gwangju. By entrusting its logistics to CJ Group, Shinsegae Group anticipates cost savings for SSG.com's delivery operations, allowing the platform to concentrate more on its grocery business and compete in the grocery delivery market alongside the group's discount chain E-mart. Furthermore, CJ Group foresees a substantial increase in its logistics volume and plans to collaborate with Emart to develop more affordable food products, with Gmarket and Emart having exclusive rights to sell these new items. The two groups are also exploring the possibility of merging their membership benefit programs to enhance the synergy of their partnership. Shinsegae Group's Shinsegae Universe Club and CJ Group's CJ One program are the respective membership programs currently in operation.


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