Lotte online mall to discontinue next day delivery service

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SEOUL — Amid an ongoing turf war between South Korean online malls trying to become the top operator of fast delivery services, LotteON, the online mall wing of South Korean conglomerate Lotte Group, will take a different and bold approach by shutting down operations overnight. delivery service. Instead, the company will focus on instant delivery services that deliver products within two hours of ordering.

South Korea’s online shopping market, which is expected to reach $224 trillion ($180 billion) in 2022, is a fierce battleground for operators providing fast delivery services such as next day delivery, one day delivery and instant delivery services that take less than a day. to deliver products ordered through online shopping malls. The online shopping market has seen explosive growth in 2020 and 2021 as people opted to shop online instead of visiting crowded places to avoid coronavirus infection.

Companies such as Coupang, Amazon’s South Korean counterpart, and SSG.com, the online shopping wing of retail giant Shinsegae Group, operate fulfillment centers, which are logistics hubs of urban type, to speed up the flow of their logistics chain and provide last-mile services. Coupang is a favorite of young workers and mothers for its overnight delivery service for groceries and other daily necessities. SSG.com uses the stores of Emart, the hypermarket wing of Shinsegae, to directly deliver products via an instant delivery service.

LotteON said the company will discontinue its overnight delivery service on April 18. The mall operator will receive its last orders for overnight grocery delivery the day before the service closes. LotteON said the company decided to discontinue overnight service to focus on its two-hour grocery delivery service. The instant service provides products from a nearby Lottemart, a mega-market franchise operated by Lotte.

“We have decided to focus on the two-hour instant delivery service to effectively utilize limited manpower and resources,” an unnamed LotteON official said in a statement.


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Peggy P. Gilmore