Following Daegu Metropolitan City’s plans to allow big retail outlets to remain open during the weekends, the city governments of Gwangju and Daejeon are reportedly considering the same idea. The government is actively exploring options to let the retailers continue offering overnight delivery services every day, including on Sundays.

At the moment, businesses including E-mart, Lotte Mart, and Homeplus are compelled to close on two Sundays each month. Additionally, they cannot deliver online orders between midnight and 10:00 in the morning.  According to a local law aimed at protecting the traditional market, retail stores in Seoul and the capital region are not permitted to offer delivery services on the fourth and second Sundays of each month.

If the existing laws are altered, big retailers will be able to use the stores as distribution centers and launch overnight home delivery.

Currently, online delivery is dominated by e-commerce companies like Market Kurly, Coupang, and Oasis.

The fact that large retailers currently need to build separate logistical facilities to offer overnight delivery provides e-commerce companies with a significant edge. Large retailers are holding off on growing their online delivery companies, but, due to the weak revenue compared to investment expenses and growing competition in overnight delivery options, they are hesitating to expand their online delivery systems.

After the government lifts the prohibitions, the two retail behemoths E-mart and Lotte anticipate developing a synergy between their physical stores and e-commerce affiliates.

An official from the local retail firm stated that no comments will be given on the existing debate regarding lifting the restriction on big retail stores' overnight deliveries and closing every second and fourth Sunday because the government is still undergoing a review. However, if the restrictions are lifted, it will undoubtedly assist local merchants in emerging from the current economic downturn.

Meanwhile, Daegu Metropolitan City implemented a policy that shifts the compulsory closing day of large retailers from Sundays to a weekday, prompting other cities to follow suit.

Source credit: https://www.koreatimes.co.kr/www/tech/2022/12/419_342489.html