The Korean markets have launched a summer sales event, diving into a fierce competition of ultra-low prices.
According to an analysis of July advertisements in Korean markets, the prices of staple sale items have been further reduced, and the range of products on sale has expanded. Despite the easing of inflation and a decline in food prices from their peak two years ago, sales have remained stagnant, prompting the industry to boost sales through ultra-low pricing strategies.
An industry insider stated, “Summer typically boosts sales of refreshing foods, but this year, the impact has been minimal. We are seeking to increase sales through low-cost marketing.” The industry is increasing the range of ultra-low-priced products, particularly during weekend sales periods when customer numbers surge.
Key items include 20-pound bags of Shirakiku and CJ Cheonhailmi rice at $9.99 each, and Shirakiku brown rice at $7.99. Rice prices have been notably volatile since the pandemic, peaking at $21.99 two years ago, dropping to $15.99 last year, and recently falling to $10.99. The resolution of California’s drought and the decrease in U.S. rice exports have increased the supply of domestic rice, bringing prices closer to the pre-pandemic level of $8.99.
Essential in Korean shopping baskets, tofu prices have also dropped. Pulmuone tofu, which was $1.49 to $2.49 earlier this month, is now down to as low as $1.00.
Prices for fermented soybean paste (doenjang), red chili paste (gochujang), and ssamjang have also decreased significantly, with 1kg containers selling for $3.99, a 50% reduction compared to last year.
“We have increased our range of ultra-low-priced products with minimal margins, aiming to enhance grocery shopping competitiveness and customer satisfaction during economic downturns,” said Kim Byung-jun, Director of the Grocery Division at Hannam Chain.
Fruits have seen the most significant price drops. For example, Hannam Chain in LA is selling Fuji apples for $0.79 per pound and red cherries for $1.99 per pound, a 50% reduction from $3.99.
Galleria Market sells Korean melons for $9.99 per box, green plums at $1.49 per pound, and seedless watermelons at $5.99 each. Zion Market is offering Zespri kiwi to members for $18.99 per box, white peaches at $0.99 per pound, and red dragon fruit at $12.99 per box.
Vegetable prices, although variable with the weather, have also fallen to pre-pandemic levels: red leaf lettuce (3 heads) for $0.99, cabbage (3 pounds) for $0.99, and Italian zucchini (2 pounds) for $0.99.
Prices for refrigerated and frozen foods have also become more affordable, offering great value. Key July deals include Namyang French Café Coffee Mix (100 sticks) for $9.99, Baeksul dumplings (1 bag) for $5.99, Pulmuone bi bim cold noodles (1 bag) for $3.99, Gas Hwalmyeongsu (1 box) for $3.99, and O’Food cold bi bim noodles (4 servings) for $6.99.
Instant noodle prices have also dropped, with multi-packs starting at $2.99 and cup noodles at $9.99 per box.
Industry experts advise purchasing essential sauces and foods during the “planned promotions” held every two weeks by food companies during the sale period, where items can be up to 50% off.
BY EUNYOUNG LEE, YOUNGNAM KIM [lee.eunyoun6@koreadaily.com]
