Sales Rise When Large Marts Switch Mandatory Closures to Weekdays... Minimal Impact on Traditional Markets

An analysis has revealed that if the mandatory closing days of large marts are switched from weekends to weekdays, there is an overall effect of increasing sales for both the large marts and the surrounding commercial areas. On the other hand, it did not lead to a decrease in sales for traditional markets. As the retail environment changes, points are being raised that existing regulatory methods are losing their effectiveness.

Switching Large Mart Closures to Weekdays Leads to Simultaneous Sales Rise in Surrounding Commercial Areas

According to a KDI video, as a result of some local governments, such as Daegu, Seoul, and Busan, changing the mandatory closing days of large marts from weekends to weekdays, the total sales of large marts were found to have increased. Although enterprise superstores (SSM) are subject to the same regulations, their sales generally increased after the change in closing days.

What is noteworthy is the impact on commercial areas near large marts. Sales at shopping malls or outlets where large marts are located increased, and the sales of restaurants and stores located within those facilities also rose together. However, in the case of Seoul, due to high population density and strong nearby consumer demand, convenience store sales increased significantly when large marts closed on weekends, but once the closing days were switched to weekdays, a pattern emerged where part of that consumption returned to the large marts.

Changes in Traditional Market and Online Consumption... Need for Policies Focused on Consumption Patterns Rather Than Regulated Sectors

It was not confirmed whether the increase in large mart sales directly leads to a decrease in traditional market sales. The analysis found no clear evidence that the increase in large mart sales causes a decline in traditional market sales. This is interpreted as being because the offline retail market has been subdivided according to purchasing purposes. Large marts handle bulk purchases of processed foods and daily necessities, traditional markets handle small-scale purchases of fresh food, and convenience stores handle immediate consumption, with each role clearly distinguished.

In the case of Dongdaemun-gu in Seoul, where traditional markets are concentrated, it was observed that as weekend visitors to large marts increased, the floating population in the surrounding commercial area also increased, which led to a phenomenon of rising sales in traditional markets. Meanwhile, as the closing days were switched to weekdays, online consumption decreased by 2.9% overall. This downward trend was particularly prominent among people in their 40s, dual-income couples, and households with children, who had a high dependency on online shopping. This is interpreted as a result of consumption that was heading online moving partially to offline as people began using large marts on weekends.

The KDI video pointed out that although the current mandatory closing day system limits consumer choice, a significant portion of actual consumption is moving online. Therefore, the suggestion was made that future policies should move away from simply regulating specific business types and should be redesigned around how consumers actually move and consume. The analysis suggests that since weekend consumption patterns and the proportion of online consumption differ by region, local governments need to approach the issue flexibly in accordance with regional conditions.