Olive Young boosts small business sales in South Korea — Korea Herald
New Olive Young stores in South Korea are helping increase sales at nearby traditional markets, restaurants and fast-food establishments. The Korea Herald reports, citing a study led by Lee Seong-ho, a professor at Hanbat National University.
Sales growth near stores
Researchers found that sales at traditional markets within a one-kilometer radius of new Olive Young locations rose by 7.9–18.3%. Restaurant sales increased by 8.8–18.3%, while sales at bakeries, coffee shops and fast-food establishments grew by 8.3–17.3%.
The study’s authors described Olive Young as an anchor retailer that draws shoppers to surrounding businesses and encourages them to stay longer in the shopping district.
Data from Gwangjang Market
Data from near the Olive Young branch at Seoul’s Gwangjang Market, which opened in April, point to a similar trend. According to Global Tax Free, spending by foreign shoppers from May to August reached 6 billion won, or $4.4 million, compared with 5.3 billion won from January to April. The number of transactions during this period rose from 38,824 to 57,677.
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These figures do not cover all spending: Global Tax Free data do not include small cash purchases or transactions at stores without the company’s terminals. Lee Bu-young, head of the Gwangjang Market Merchants Association, said that the number of visitors in their 20s and 30s and international visitors has increased significantly, while Olive Young’s assortment largely does not overlap with the market’s goods.
Expansion beyond Seoul
The company is also expanding stores outside the capital region. Following its expansion in August, the Nampo Town store in Busan ranked first in the country in sales to local shoppers during a September promotion, while the number of customers doubled compared with the same campaign last year.
The expanded store is expected to attract more visitors to the Jagalchi and Gukje markets, located less than 500 meters away. Olive Young plans to invest 123.8 billion won this year in shopping infrastructure outside the capital region.
