Key facts
- Warehouse-style discount stores are outperforming conventional hypermarkets in South Korea.
- Costco and E-Mart Traders reported record September payment figures.
- Costco Korea's revenue increased 12.1% in fiscal 2025.
- Traders' operating profit more than doubled over two years.
- E-Mart's conventional discount store revenue declined 3.6%.
South Korean consumers are increasingly opting for bulk purchases at warehouse-style discount stores amid high inflation, leading to record sales for these retailers. Costco and E-Mart Traders have seen significant growth, with combined estimated payments reaching 1.45 trillion won ($1.1 billion) in September, the highest on record. This surge contrasts sharply with the stagnant sales of conventional hypermarkets.
Costco Korea reported a 12.1% revenue increase to 7.322 trillion won ($5.5 billion) in its fiscal year 2025. E-Mart Traders also saw its gross revenue grow to 3.852 trillion won ($2.9 billion) last year, with operating profit more than doubling over two years. In contrast, E-Mart's conventional discount store revenue declined by 3.6% over the same period.
This trend is driven by consumers like Kim Eun-young, who find bulk buying more economical for regular food items and household essentials, despite larger individual bills. The strategy of narrowing product lineups and expanding private-label offerings contributes to the price competitiveness of these discount stores.