Emart's warehouse club Traders Wholesale Club (hereafter Traders) is upgrading its same-day delivery service and closing in on industry leader Costco. While Costco ended its same-day delivery service after about a year and shifted back to a strategy focused on offline stores, Traders has steadily strengthened its service by expanding same-day delivery areas and product categories.
According to the retail industry on the 25th, Shinsegae Group's e-commerce platform SSG.com expanded the range of same-day delivery items for Traders' bulk fresh and processed foods during its special-price event "22 Week," which runs from the 22nd to the 26th of this month. Popular bulk products such as "Goraesa assorted fish cakes for soup," "Sajo Group easy-open tuna," and "Onlynuts daily nuts" are included for delivery and are being sold at event prices.
Until last year, SSG.com offered same-day delivery mainly for various processed foods, general merchandise, and its private brand (PB) "T Standard." However, it was limited by delivery areas restricted to neighborhoods near Traders stores nationwide.
In response, in Feb. this year SSG.com switched metropolitan-area Traders parcel deliveries to CJ Logistics' "O-NE" and expanded same-day delivery coverage to the greater Seoul area. At the same time, various fresh items such as bulk meat, fruit, and bakery goods were added to the same-day delivery list. It also lowered the free delivery threshold from 120,000 won to 90,000 won to improve accessibility.
Currently, SSG.com offers same-day delivery for orders placed between 11 a.m. and 1:30 p.m., depending on the region. It also offers a scheduled delivery service that lets customers reserve delivery on a specified date up to three days from the order date. An SSG.com official said, "We plan to continue working with Emart to expand Traders' delivery coverage."
While SSG.com is focusing on strengthening delivery services, Costco has recently ended its same-day delivery service and is putting more weight on its offline stores. In Sept. last year, Costco introduced in Korea the "Same-Day" service it offers in the United States, Canada, and other markets. The service provided same-day delivery for customers who purchased at least 75,000 won on the online mall from midnight (12 a.m.) to 3 p.m., with a delivery fee of 9,900 won.
However, Costco ended the Same-Day service on Aug. 1 this year, about a year after launch. Although it temporarily lowered the same-day purchase threshold to 49,000 won and the delivery fee to 7,500 won to compete, it is seen as concluding that it would be difficult to secure competitiveness against Traders, as well as Coupang and Kurly. Costco now offers only standard delivery, which can take up to three days, and fresh foods are not eligible for delivery.
Although it stepped back from same-day delivery, Costco's strong customer loyalty based on its paid membership remains a strength. Costco's annual fee ranges from a minimum of 38,000 won to a maximum of 86,000 won, depending on benefits.
Costco Korea posted sales of 732.2 billion won and operating profit of 254.5 billion won in fiscal year 2025 (Sept. 2024–Aug. this year). Compared with a year earlier, sales rose 12.1% and operating profit increased 16.5%. The operating margin was 3.47%.
Traders is also quickly scaling up. On a cumulative basis for the first to third quarters this year, Traders recorded sales of 2.8674 trillion won and operating profit of 112.7 billion won, up 5.7% and 26.9%, respectively, from a year earlier. During this period, its operating margin was 3.93%, exceeding Costco's, and in the third quarter this year it topped 1 trillion won in quarterly sales for the first time.
Unlike Costco, anyone can shop at Traders without paying a separate annual fee. While it does have a separate membership, it operates only in a format that provides various benefits to members, such as member-only discounts and point accrual.
In terms of store count, Traders has overtaken Costco. Costco opened its first branch in Yangpyeong-dong, Yeongdeungpo District, in 1994 and now operates 20 stores. Traders started in 2010, 16 years later than Costco, but has since increased its store count to 24. Traders is also preparing additional openings mainly in provincial cities where it has no stores.