SSG.com declared itself the "Korea's leading online grocery mall" and on Aug. 12 released second-quarter (April–June) results after overhauling delivery, products, and membership. The company said the capabilities built during this period were confirmed by July results.
Second-quarter indicators moved first in delivery. Sales of the reserved delivery service "Sseuk weekly delivery," which uses E-MART stores as hubs, rose 17% from a year earlier, and orders for the instant delivery service "Baro-quick," which delivers within about an hour within a 3-kilometer radius of a store, increased 151% from the first quarter. June order volume was 3.4 times the January level. In products, more than 6 out of 10 customers who bought fresh food covered by the "freshness guarantee program" repurchased fresh food within the same quarter, and the online average daily sales of E-MART's flagship event "Goraeit Festa" increased 20% from the previous quarter.
The trend continued in July. Grocery sales in July rose 12% from a year earlier, and the growth rate of "Sseuk weekly delivery" expanded to nearly 30%. As membership-linked promotions were run every week, member sales increased 15% from the previous month.
The analysis is that broadening delivery options proved effective. SSG.com subdivided pickup time slots and increased capacity for existing reserved delivery, while last month it began pilot operations of "2-hour delivery" targeting bulk grocery shopping at E-MART's Yangjae and Hanam stores. Small orders go via "Baro-quick," and bulk orders via "2-hour delivery."
SSG.com will add "2-hour delivery" this month to major areas of Seoul and to more than 10 stores in Busan–South Gyeongsang, Daegu, and Daejeon, and will expand it to some 50 stores within the year. The goal is to secure the capability to handle up to 150,000 deliveries per day by year-end.
Choi Taek-won, CEO of SSG.com, said, "We will enhance delivery competitiveness while also improving profitability through business structure efficiencies."