Retailers slash product prices to draw consumers as inflation soars

Cheap fried chicken on sale at Homeplus in Seoul, on Aug. 10. Korea Times file

By Kim Jae-heun

Retailers are adopting a "minimum price" marketing strategy to attract consumers amid soaring inflation, according to company officials Wednesday.

Homeplus' heavily-discounted fried chicken costing 6,990 won ($5.34) per box and 9,990 won for two boxes has gained huge popularity among customers.

It is nearly one third the price of a box of fried chicken sold at BBQ Genesis franchises. Between June 30 and Aug. 7, the discount store chain sold around 300,000 boxes of the fried chicken.

"As overall living costs continue to rise in the country, we came up with ultra-low-priced chicken items to attract consumers. We just use smaller-sized chicken and we fry them with the same brand cooking oil that franchise firms use," a Homeplus official said.

It is not only the food that consumers are looking for, but also good value for their money.

The country's largest discount store chain Emart's private brand items are selling well too. According to the retailer, the average price of 25 products offered by its No Brand line is 46 percent cheaper than other brand items. This caused No Brand's sales in the first half of this year to increase 5.2 percent compared to 2021.

In addition, as the government decided to temporarily reduce a 30-percent tariff on processed meat, No Brand is selling 100,000 chicken skewers for a 2,000 won discount.

Lunchbox items are displayed on the shelf at CU convenience store in Seoul, on Aug. 9. Courtesy of BGF Retail

Coupang's private brand Tamssa is another beneficiary of soaring inflation. Daily necessities like bottled water, tissue paper and shampoo are currently its best-selling items.

"We believe consumers are trying to save their money in every aspect of their expenditures. Before, people purchased groceries of their favorite brands, but now they are choosing items with the best prices offered," an Emart official said.

From April, BGF Retail's convenience store CU introduced two lunchbox items sold for 2,900 won targeting students. It is an attractive price considering that an average lunchbox menu sold at convenience stores here cost 4,500 won.

"Since the launch of the 2,900-won lunchbox menu, our revenue increased 21 percent compared to the previous month. They have been the bestsellers at CU for last four months," a BGF Retail official said.

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