In September 2026, warehouse discount stores in South Korea reached an all-time high as combined sales for Costco and E-mart’s Traders hit 1.45 trillion KRW. Driven by bulk-buying habits to offset rising living costs, these big-box retailers expanded their monthly revenue by 20.8% year-over-year, starkly outperforming traditional supermarkets.
The Retail Divide in South Korea
- Record Spending: Combined monthly sales at Costco and E-mart Traders reached 1.45 trillion KRW in September 2026, marking a 20.8% increase from a year earlier.
- Stagnant Competitors: While warehouse club revenue surged, traditional hypermarket branches—such as those run by Lotte Mart—posted marginal gains or remained unprofitable during the same general reporting period.
- Demographic Driver: Households with four or more members are driving the trend, with 69.1% visiting these warehouse outlets monthly and a significant share dropping 200,000 KRW or more per visit.
Warehouse Clubs Absorb Surging Consumer Spending
Online and mobile grocery shopping may dominate daily convenience, but physical retail dollars are concentrating heavily inside warehouse clubs. According to market tracker Wiseapp·Retail data released in October 2026, the combined sales figure of 1.45 trillion KRW for Costco and E-mart Traders represents a 29.5% expansion compared to September 2024. Both brands individually broke their historical monthly sales records, according to the tracking firm’s credit and debit card expenditure analysis.
The financial statements of these operators reflect that top-line acceleration. Costco Korea reported fiscal year 2025 revenue of approximately 7.32 trillion KRW covering September 2024 through August 2025, climbing 12.1% from the prior fiscal period. Operating income for the warehouse operator grew 16.5% to reach roughly 254.5 billion KRW across its 20 domestic store locations.
| Retailer / Segment | Period | Revenue (KRW) | YoY Growth / Status |
|---|---|---|---|
| Costco & E-mart Traders (Combined) | September 2026 | 1.45 Trillion | +20.8% YoY |
| Costco Korea | FY 2025 (Sep-Aug) | 7.32 Trillion | +12.1% YoY |
| E-mart Traders | First Half 2026 | 2.05 Trillion | +10% YoY |
| Lotte Mart (Domestic Discount Outlets) | First Half 2026 | 2.02 Trillion | +2.8% YoY (Ongoing Operating Losses) |
Traditional Hypermarkets Stumble While Bulk Outlets Expand Margins
The contrast between warehouse clubs and standard supermarkets highlights an ongoing structural shift in South Korean consumer spending. E-mart Traders posted first-half 2026 sales of 2.05 trillion KRW, a 10% increase over the same period the previous year, with operating income climbing 12.7% to 82.4 billion KRW. By contrast, traditional large discount stores continue to experience flat or negative growth dynamics.
Standard discount locations operated by E-mart generated 5.82 trillion KRW in domestic revenue during the first half of 2026, ticking up a negligible 0.2% compared to the prior year. Lotte Mart fared similarly, posting domestic discount revenues of 2.02 trillion KRW, up just 2.8% year-over-year while narrowing its operating loss to 33.4 billion KRW but failing to clear profitability.
Family Demographics and Price Sensitivity Dictate Store Traffic
Unit-price economics explain the divergence in foot traffic. Consumer research published by Embrain TrendMonitor in July 2026 showed that 90.8% of surveyed warehouse club shoppers expressed satisfaction with their experience. Among those respondents, 61.9% pointed to lower unit costs compared to standard grocery stores as the primary advantage, followed by the availability of bulk packaging at 49.4% and product variety at 48.3%.
The financial commitment per trip remains high. A significant share of shoppers in households with four or more members routinely spend 200,000 KRW or more in a single warehouse club run. These multi-person households visit warehouse locations more frequently than single-person or two-person households, cementing the role of bulk-format retailers as the primary provisioning ground for inflation-conscious families.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
