By Kim Tong-hyung
Staff Reporter
Barely a month after declaring itself as the country's cheapest source of essential grocery items, the humbled discount giant, E-Mart, appears to be backing off.
E-Mart, the country's largest retail chain and crown jewel of Shinsegae Group's corporate empire, had engaged in a cut-throat price competition with rival discount chains such as Lotte Mart since the start of the New Year.
After E-Mart announced it would be shedding up to 36 percent off the prices of 12 consumer items, including snacks and everyday items, Lotte Mart and Homeplus responded by touting to sell the same products for ``10-won less,'' only to have E-Mart again promising to provide the lowest prices and so on.
Although the price competition jolted the number of visitors flocking to E-Mart outlets, it quickly turned out to be a public relations (PR) disaster, with the retailer failing to supply enough products to go around the hoards of consumers at the gates.
After being shelled by consumer complaints, as well as resistance by food companies and other manufacturers to provide their products at lower prices, E-Mart has now finally conceded and declared an end to the ``10 won wars.''
``We won't be offering discounts of a greater level than those we promised on Jan. 7 and Jan. 15. Our outlets in certain districts, in competition with other chains, have been continuously shedding 10 won or 20 won off the prices, but the prices there will be returned to normal levels as well,'' said an E-Mart official.
At E-Mart's Yeongdeungpo outlet, the price of belly pork had plunged to around 580 won per 100 grams, as it competed ferociously with a nearby Lotte Mart.
However, as of Monday, the outlet was selling pork belly at around 970 to 980 won per 100 grams, recovering its normal level, which now has the neighboring Lotte Mart selling the same cuts at around 970 won, apparently still clinging to the 10 won rule.
Consumer rights advocates have been questioning whether E-Mart's loud discount promises were just a cheap way to lure more consumers and have them buy other items on the shelves instead.
Aside of the Orion chocolate pie and a few others, E-Mart's list of the 12 discount products was devoid of well-known brand products, and consumers were frustrated to see the frequent ``sold-out'' signs on the fruit and meat aisles.