[Reporter’s Notebook] Reasons for Supporting the Abolition of Mandatory Holidays for Large Supermarkets

As the Lee Jae-myung government is rapidly introducing policies at the beginning of its term, there is a sense of tension in the distribution industry. This is because there is more concern about the strengthening of regulations than expectations for the consumption stimulation effect that will occur through the people's livelihood recovery consumption coupons.

Currently, large supermarkets must close on the second and fourth Sundays of each month according to the Distribution Industry Development Act, and cannot operate from midnight to 10 AM. However, as local government ordinances allow holidays to be designated on weekdays, there is room to expect weekday holidays, which have less impact on sales. In this situation, the Democratic Party of Korea has successively proposed amendments to the distribution law that include stronger regulations than before. The '20 Major Livelihood Agenda' prepared last March to protect small business owners also included content limiting mandatory holidays for large supermarkets to public holidays. Although the content of business regulations for large supermarkets was not specified in the president's election pledge book, the Democratic Party still adheres to strengthening regulations.

The problem is that the distribution environment is significantly different now compared to when the law was enacted in 2012. As e-commerce takes the lead and the number of stores is being reduced, can the large supermarket industry, with major companies like Homeplus undergoing corporate rehabilitation procedures, be said to be in a position to be subject to business hour regulations? Moreover, one of the main reasons for enforcing mandatory holidays for large supermarkets is to revitalize traditional markets. However, it is difficult to see traditional markets and large supermarkets as approaching the same demand group with the same goal.

The distribution industry is already focusing more on how to make customers stay longer rather than on the lowest price competition. This is because it is difficult to keep up with online platforms in a situation where price competitiveness can be compared to the unit of 1 won on the spot. Even at the same price, it is reasonable for consumers to use e-commerce that delivers to their doorstep. For this reason, large supermarkets have revised their strategy to be places where people stay comfortably and for a long time, rather than just places to buy cheap goods.

For caregivers, one of the competitive advantages of large supermarkets could be the private education market. Personally, I taught pre-school children soccer, Go, art, ballet, etc., at the supermarket cultural center at a much cheaper price than private academies. Regardless of rain, cold waves, or fine dust, supermarkets that provide the same level of temperature and clean environment are the easiest outing places for families with young children. At a time when the nation is focusing all its efforts on overcoming low birth rates, it is desirable to ease regulations by abolishing the mandatory two monthly holidays for large supermarkets.



wonder@fnnews.com Jeong Sang-hee Reporter