Marginal Retailers Losing Ground
By Lee Hyo-sik
Staff Reporter
Large discount stores and 24-hour convenience shops have thrived over the past few years, drawing more customers in with low prices, convenience and other amenities, at the expense of small retail stores operating in traditional markets and residential areas.
According to the National Statistical Office (NSO) on Thursday, the number of large chain store outlets increased 32.8 percent to 316 across the country in 2005 from 238 four years ago. Also, the number of franchised 24-hour convenience stores grew nearly 144 percent to 10,034 from 4,116 over the four-year period.
However, the number of small- and medium-sized retail shops, or mom and pop stores, stood at 95,967 at the end of 2005, down 10.6 percent, or 11,398, from 107,365 in 2001.
The statistical office said an increasing number of consumers are flocking to big discount chains to purchase various items, ranging from groceries to clothes and electronics because of low prices, convenience and other amenities, while shunning mom-and-pop stores.
After the complete opening of the nation's distribution industry in 1996, large discount and convenience stores rushed in and flourished over the past eight years, while small retailers fared poorly, it said.
The number of bakeries decreased by 32.3 percent to 2005 from 2001, stores selling rice and other grains by 26.7 percent, and butcher shops by 15.6 percent.
Also, as more people shop on the Internet, the number of business-to-business and business-to-consumer online shops have increased sharply over the years. The number of online stores rose 107.7 percent during the four-year period, with a 91.1 percent increase in revenues.
The number of Korean food restaurants and cafeterias increased 11.4 percent and 36.1 percent, respectively, while those offering Chinese and Japanese cuisine fell 8.8 percent and 9.1 percent, respectively.
The statistical office also said the number of recreational lodging facilities has increased over the past few years amid increasing adoption of the five-day workweek system. The number of recreational condominiums and training facilities for adolescents in rural areas jumped 66.7 percent and 20 percent for the past four years, respectively.
But the number of hotels fell 4.5 percent as more travelers head overseas for vacation amid a strong won against the dollar and other currencies.