With inflation so high, smaller packages are answer for some

Small-packaged green onions are on display at Homeplus. [HOMEPLUS]

In the time of inflation and high prices, large marts and convenience stores are pushing small-packaged products that target single-person households.

Convenience stores are offering small packages of beef and pork, which were mainly sold at large marts. Large marts are selling vegetables and other produce individually, as they compete with convenience stores for single-person household customers.

Five large marts — E-Mart, Lotte Mart, Homeplus, GS The Fresh, and Nonghyup Hanaro — have been selling onions and bell peppers individually in their stores since Monday. In the past, vegetables like onions were packaged separately with nets, which required labor in farms and made it difficult for single-person household consumers to purchase vegetables in small quantities.

The Ministry of Agriculture, Food and Rural Affairs has placed a bridge between retailers and farms so that produce could be sold to consumers without packaging. "Last February, a pilot event was held at 96 stores nationwide and the response was good," said Lee Yong-jik, head of the Food Consumption Promotion Divison at the Ministry of Agriculture, Food and Rural Affairs. "We will expand unpackaged sales to other agricultural products as well."

According to Homeplus, its sales of small-packaged seafood sold from June 1 to June 15 increased 20 times compared to January. During this period, the proportion of sales of livestock products and vegetables in small packaging increased by 320 percent and 120 percent respectively. Small-packaged products that contained enough amounts for one or two-person households to eat at one time have also become available. Existing Homeplus Signature Series meal kits, which were made for 3 servings, were adjusted for 1 serving, while a 30-piece sushi product was made available in a 4-piece version.

Convenience stores are responding to high prices of produce by selling ultra-low-priced private brands and small-packaged vegetables at lower prices. Convenience store chain CU recently launched "Fresh Vegetables," a series of small packaged vegetables. The Fresh Vegetables series includes 15 kinds of vegetables, including garlic, red pepper, green onions, ssam, cabbage and potatoes, divided into one to two servings. Samgyeopsal, sirloin and brisket for steak are also sold in small packages of 200 grams.

BGF Retail, which owns CU, minimized distribution margins by transacting directly with Maninsan Nonghyup Local Distribution Center, a distribution channel specializing in vegetables. "The selling price of the Fresh Vegetables series is 900 to 4500 won, which is 30 percent lower than the average price in the industry," said a CU official.

According to CU, vegetable sales at stores in officetel and one-room areas with many single-person households increased by 25.1 percent last month compared to the same period last year. Vegetable sales increased by 17.3 percent at stores located in residential areas, with a concentration of apartment buildings. "In line with the increase in the demand for home-cooked meals among single or two-person households due to the increase in the price of eating out, we have strengthened our line of high-quality ingredients at reasonable prices," said BGF Retail HMR Team Product Manager Han Jeong-ju.

GS25, another convenience store chain, started "Real Price," a private brand of GS Retail's GS The Fresh supermarkets. Real Price is an ultra-low-priced brand that GS The Fresh has provided by discovering products from small and medium-sized companies and selling them at 70-80 percent of the general price. Six types of industrial products were introduced first, including kitchen towels, sanitary gloves, sanitary packs and roll bags. The Real Price line has more than twice the capacity of existing products, but the price is about 20 percent cheaper. They are mainly introduced to stores in residential districts, and the number of target products is expected to increase in the future.

"In order to contribute even a little to price stability, we are collaborating with various distribution channels owned by GS Retail," said Cha Jeong-hyeon, Product Manager of GS Retail's Life Living Planning Team.

"The sales competition with large marts for single-person households will become more intense," said an industry insider from convenience store with anonymity.

BY KIM MIN-SANG [lim.jeongwon@joongang.co.kr]