Retail in Asia

In Markets

Shinsegae launches food-delivery service


The race in grocery delivery starts at the break of dawn in South Korea, with, an online marketplace under Korean retail major Shinsegae Group, becoming the latest to join the early-arrival phenomenon sweeping the niche fresh food market.

SEE ALSO : Shinsegae to launch integrated online shopping firm SSG.COM

Shinsegae Group said that early morning delivery service will be offered to consumers in 10 district areas including Gangnam and Seocho in southern Seoul. The retailer will begin receiving orders from 3 p.m. on June 26, 2019 until midnight for delivery on the next day or any other selected day in between 3 a.m. and 6 a.m.’s early morning deliveries will cover up to 10,000 items including of fresh food, organic products, bakery, different types of cooked meals or side dishes served with rice, baby products such as nappies and formulas, and pet food. The retailer said that it has double the types of fresh products on offer compared to other retailers offering early morning delivery service.

Shinsegae Group said that it is capable of offering more products on delivery list thanks to its cutting-edge, online-exclusive distribution center, NE.O, in Gimpo, Gyeonggi Province, which can manage up to 50,000 items.

The facility is capable of processing about 2,000 delivery orders every hour, or 1 order per 2 seconds, as 80 percent of delivery preparation process is automated. The retailer said that NE.O is equipped with goods to person (GTP) system that enables products to be dropped automatically in front of facility workers, which enhances speed and efficiency, automated stock management system, and cold-chain system that levels up product freshness.

Shinsegae Group has also made its own 100,000 environmentally-friendly insulated food delivery bags, which do not require other packaging materials during delivery.

The retailer will offer a free gift that consists of 30 different types of breakfast meals such as Caesar salad and steak meal kit to consumers that order online for morning delivery in July.

Shinsegae Group, meanwhile, is the latest to join the bourgeoning market for early delivery service. Fresh food delivery site Market Kurly was the first to offer such service in Korea in 2015, and has been joined by others including Coupang and Lotte Super.

SEE ALSO : Starbucks Hong Kong partners with Deliveroo to launch delivery services

Market Kurly has seen sales jump from 2.9 billion won (US$2.5 million) in 2015 to 17.4 billion won in 2016, 46.6 billion won in 2017, and to 157.1 billion won in 2018.

(Source: Pulse News)