"I came here specifically because I can buy brand-name products at a lower price," said Park, a 30-something housewife, while shopping at NC Picks on the seventh floor of NC Department Store in Gangseo, Seoul, on the afternoon of October 23. She drove about 30 minutes from her home in Mapo to look for a padded jacket priced around 50,000 won.
NC Picks, operated by E-Land Retail, is an off-price store that sources and sells domestic and international brand products at discounts of 50% to 80%, with some items available for up to 90% off. The store receives shipments two to three times a week, and its inventory is refreshed daily.
Even during weekday afternoons, typically a quiet time, the store was bustling with customers browsing through items and checking prices on their phones. Foreign shoppers were also noticeable in the shoe and household goods sections.
As inflation persists, consumer shopping habits are changing. Shoppers are embarking on bargain hunts, seeking out cheaper options, and opting for company cafeterias or convenience stores for meals due to rising dining costs. There is a growing trend of consumers aiming to purchase better products for the same price rather than sacrificing brand and quality.
Online discount information is driving foot traffic to physical stores. NC Picks was offering additional discounts for members of its KakaoTalk open chat room, providing 5,000 won off purchases over 100,000 won and 15,000 won off purchases over 200,000 won. As of October 22, approximately 3,500 people were participating in the Gangseo store's chat room. An E-Land Retail representative noted, "Customers often inquire about product availability after seeing photos posted in the chat room."
The primary customers of NC Picks are middle-aged individuals in their 40s and 50s. According to E-Land Retail, in October, 29.4% of sales at the Gangseo and Bundang locations came from customers in their 50s, followed by 26.6% from those in their 40s and 20% from those in their 60s. Notably, weekday sales have increased, with sales at both locations rising about 3% compared to September. The peak shopping hours are between 2 PM and 5 PM, when many customers were seen shopping.
Sales have surged significantly since the store's renovation. From July 15 to October 20, sales at the Gangseo location increased by 129.7% compared to the same period last year. The Bundang location also saw a 100.8% increase in sales from September 23, when it reopened after renovations, to October 20, compared to the same period last year. Both stores have more than doubled their sales since the renovations.
Lunch Options Reflect Value Consciousness as Demand for Cafeterias and Convenience Stores Grows
The trend of price-sensitive consumers is also evident in changing lunch habits. As dining costs rise, office workers are scrutinizing the price of their lunches.
According to the Korea Consumer Agency's price information portal, "Chamgak," the average price of gimbap rose to 3,923 won in September, an 8.3% increase from 3,623 won a year earlier. Bibimbap increased from 11,577 won to 12,000 won, a 3.7% rise, while kimchi stew set meals went up from 8,577 won to 8,846 won, a 3.1% increase. Kalguksu also surpassed 10,000 won, rising from 9,769 won to 10,038 won, a 2.8% increase.
With many lunch options now costing around 10,000 won, office workers are increasingly turning to relatively cheaper company cafeterias instead of regular restaurants.
The number of office workers using company cafeterias has risen, with cumulative meal counts at modern green food-operated cafeterias in office areas increasing by 9.5% from January to September compared to the same period last year. Samsung Welstory's meal counts have grown an average of 7% annually from 2023 to the projected figures for this year. CJ Freshway's office and industrial cafeteria meal counts also saw an average annual increase of 6% during the same period, with related sales rising by an average of 11.7%.
A 20-something office worker in Gwanghwamun said, "Since there is no dedicated cafeteria in my company, I often look for nearby cafeterias that are open to the public or grab lunch at nearby burger joints or convenience stores."
Sales of convenience store lunch boxes are also on the rise. From January to September this year, GS25's lunch box sales increased by 18.3% compared to the same period last year, while CU's sales rose by 10.3%. Convenience store lunch boxes offer the advantage of being a quick meal option without the need for cooking, and they are generally less expensive than dining out.
To capture the demand for lunch, convenience stores are diversifying their products and cooking methods. GS25 recently introduced sandwiches made with ciabatta and salt bread, as well as bite-sized gimbap. Notable items include the 4,200 won "White Teriyaki Chicken Sandwich" and the 3,000 won "Dipping Market Style Mini Gimbap."
CU has also launched a "Smart Cooker" that combines microwave, air fryer, and oven functions. This device automatically cooks food according to pre-set recipes when the product barcode is scanned, with plans to install about 500 units in college areas and neighborhoods with a high concentration of single-person households.
Choi Cheol, a professor of consumer studies at Sookmyung Women's University, stated, "As inflation continues and household economic conditions do not improve significantly, consumers are showing a tendency to cut back on essential expenses like food and prioritize value for money. This consumer behavior is likely to persist for the foreseeable future."
Lee Young-ae, a professor of consumer studies at Incheon University, noted, "As economic difficulties prolong, people are finding ways to save on essential expenditures like clothing and food. However, they are not completely giving up on spending for personal enjoyment, sharing discount information, and enjoying the shopping process, thus balancing saving and spending."
* This article has been translated by AI.
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