Consumers frustrated; large stores call it a death sentence


Double-income couples and the retail industry are perplexed by a revised bill recently proposed by the Democratic United Party to close large discount stores from 9 p.m. to 10 a.m. and also three to four times a month.

“I was not happy to hear that, especially the part about discount stores having to close more than three times a month,” said 30-year-old office worker Jang Jae-hyuk, whose wife also works.

“We don’t go to traditional markets when large marts close; we wait until it opens. I don’t think the revised law would make profits flow into small or traditional markets but just make consumers unhappy,” he said.

The DUP agreed on Wednesday on the revised bill proposal. The party asserted that the bill will support small- and medium-sized stores.

The bill is stirring up controversy, however, especially as it has barely been months since large marts were forced by local governments to take two days off per month and close from midnight to 8 a.m.

Retail giants pointed out that if the bill passes, it would be like a death sentence for them.

“The sales made between 9 p.m. to 10 a. m. takes up 20 percent of the day’s total sales. And if we have to close four times a month according to the new bill, which will probably be on Sundays, that will bring another 25 percent decrease in sales,” said a PR official at a giant retail store.

“No matter how we strive by holding events, we expect a minimum 30 percent and maximum 45 percent drop in sales. That is like telling us to close down.”

The bill will not help out small-sized merchants and farmers but hit them hard instead, he argued.

“Our suppliers already have to deal with about 600 billion won worth of products that could not be supplied because of the current two-day-off system. If we have to close four times a month, they will have to suffer with double of the amount. A lot of vegetables will have to be thrown out. Small stores within the mart like hair salons or food courts will also be struck,” he said.

Industry insiders also pointed out that the bill will not be much of a support to small stores or traditional markets because they close before 9 p.m. anyway, but instead cause an overall slump in domestic consumption.

Bahk Jae-wan, minister of strategy and finance, also expressed concern about the DUP’s proposal on Saturday after a hiking meeting with the press at Mount Bukhan, that “such regulations are undesirable” and called for more “prudence.”

“Most of the employees at large marts are women or from the low-income class who have difficulty in finding jobs and work by the hour. Their job opportunities may decrease. Farmers and fishermen who supply to the marts may also suffer a blow,” said Bahk.

The minister added that there are quite a lot of double-income couples who have to go grocery shopping after 9 p.m. and too much restriction on economic activity yields other various side effects.

“A closer analysis is needed to see if (restriction of large marts’ opening hours) directly leads to the revitalization of traditional markets,” said the minister.

By Park Min-young  (claire@heraldcorp.com)