Sunday supermarket closures could be pushing consumers to shop online, study finds

A government policy designed to protect traditional markets by forcing large discount retailers to shut down twice a month may be backfiring, accelerating the decline of both traditional markets and brick-and-mortar stores, a new study released on Tuesday suggests. 

 
Under a law enacted in 2012, major supermarket chains and hypermarkets in Korea must close two days each month. The rule, part of the Distribution Industry Development Act, aims to give traditional markets and local businesses a chance to compete and ensures retail workers receive regular rest. But new data indicates that shoppers are simply going elsewhere — most often, online

The Korea Economic Research Institute (KERI), affiliated with the Federation of Korean Industries, found using a 2022 dataset from the Rural Development Administration that the average daily spending on groceries at traditional markets by 1,500 households in the greater Seoul area was 6.1 million won ($4,280) on days when large stores were closed.

 
Surprisingly, this figure was lower than the 6.3 million won spent on regular Sundays when the stores remained open.  

 
In contrast, online grocery sales saw a notable increase. On mandatory closure days, households spent an average of 87.7 million won online, 1.3 million won more than on the larger retailers’ opening Sundays. Supermarkets also gained traction with spending reaching 19.2 million won — 1.1 million won more than on typical Sundays.

 
“Consumers either shift to online purchases or buy in advance if large retailers are closed,” said Yoo Min-hee, a research fellow at KERI.

 
“This shows that large retailers and traditional markets are not rivals but serve complementary roles in the retail landscape.”

 
The trend becomes even more evident when looking at long-term data.  

 
Grocery spending at traditional markets on mandatory closure days fell 55 percent from 13.7 million won in 2015 to 6.1 million won in 2022. Spending at supermarkets was cut in half over the same period, from 38.4 million won to 19.2 million won.

 
Meanwhile, online spending surged from just 1.8 million won in 2015 to 87.7 million won in 2022, marking a 48.7-fold increase.

 
“As more consumers shift to online shopping, regulations on large retailers may end up pushing even more people toward e-commerce, accelerating the decline of the offline retail sector,” Yoo said.

Source: https://koreajoongangdaily.joins.com/news/2025-04-15/business/industry/Sunday-supermarket-closures-could-be-pushing-consumers-to-shop-online-study-finds/2285456

Comprehension

What is the purpose of the law requiring large discount retailers to close twice a month?
When was this policy first enacted in Korea?
What organization conducted the study mentioned in the article?
What did the study find about grocery spending at traditional markets on closure days versus regular Sundays?
How did online grocery sales change on days when large stores were closed?
What was the average amount spent online on closure days, according to the study?
What trend has been observed in spending at traditional markets from 2015 to 2022?
By how much did online grocery spending increase between 2015 and 2022?
What argument did KERI’s researcher Yoo Min-hee make about the relationship between traditional markets and large retailers?
What unintended consequence might the current retail regulation be causing, according to the study?

Discussion

Do you think closing large stores twice a month is a good way to protect small businesses? Why or why not?
Why do you think consumers prefer shopping online when large retailers are closed?
How might this policy affect workers at both large retailers and traditional markets?
What are the advantages and disadvantages of online shopping compared to shopping in stores?
Should governments interfere in consumer shopping habits to support small businesses?
How could the policy be changed to better support traditional markets?
What role do you think traditional markets should play in a modern economy?
Have you personally changed your shopping habits in recent years? If so, how?
Do you think brick-and-mortar stores can survive in a world dominated by e-commerce?
How important is convenience in the choices consumers make when shopping?

Vocabulary

Retailer – A business that sells goods to the public.
Mandatory – Required by law or rules.
Hypermarket – A very large store that sells both food and non-food items.
Dataset – A collection of related data used for analysis.
Surprisingly – In an unexpected or unusual way.
Complementary – Serving to complete or enhance something else.
E-commerce – Buying and selling products online.
Affiliated – Connected or associated with an organization.
Regulation – A rule or directive made and maintained by an authority.
Unintended consequence – A result that was not planned or expected.