SSG.COM's strategy of upgrading delivery, leveraging E-Mart products, and strengthening membership appears to be paying off.
According to the three-month performance report for April to June released on the 12th, SSG.COM, which declared in March that it aimed to become Korea's leading online grocery platform, saw its grocery sales rise 12% in July from a year earlier.
The company said the gains were driven by a more advanced delivery system covering both scheduled and immediate delivery, as well as stronger synergy with E-Mart products and promotions and its paid membership program, the 'SSG7 Club,' which boosted its grocery competitiveness.
First, SSG.COM refined its existing scheduled delivery service and expanded immediate delivery options to offer customers more choices.
In delivery, the company narrowed the pickup time slots for its 'SSG Weekly Delivery' service, which is based at E-Mart stores, lifting July sales by about 30% from a year earlier. Orders for 'Baro Quick,' an immediate delivery service that takes about an hour, jumped 151% in the second quarter from the first quarter. SSG.COM also began a pilot run of '2-Hour Delivery' for larger grocery orders, building a delivery system that complements the small-order-focused Baro Quick. The company plans to expand the number of stores offering 2-Hour Delivery to more than 50 by the end of the year and secure the capacity to handle up to 150,000 deliveries a day.
In products, SSG.COM expanded its selection of fresh E-Mart items and strengthened cold-chain management, leading more than 60% of customers who bought under its 'Freshness Guarantee Program' to make repeat purchases. Average daily online sales for E-Mart's flagship promotion, the 'Goraeit Festa,' also rose 20% in the second quarter from the previous quarter.
In membership, the retention rate for the 'SSG7 Club,' which gives members 7% of their grocery spending back as points, exceeded 90%. The average grocery spending per membership customer was more than 90% higher than that of non-members, and purchase frequency was nearly twice as high.
Choi Taek-won, CEO of SSG.COM, said, "We are accelerating growth in online grocery shopping by strengthening our competitiveness in delivery, products, and membership." He added, "We will continue improving delivery capabilities so customers can receive the products they need at the time they want, while also enhancing profitability through greater efficiency in our business structure."
Kim So-hyung, Sportschosun compact@sportschosun.com
This article has been translated by GripLabs Mingo AI.
