Korea Federation of SMEs and Startups surveys 900 small and medium-sized businesses... Department store average sales commission rate 26.1%
The response rate of sales decrease for companies with Homeple stores was the highest at 63.0%... “Fees reduction is most needed”
(Seoul = Yonhap News) Reporter Lee Sang-seo = A survey showed that about 4 out of 10 small and medium-sized businesses located in large supermarkets had decreased sales through their distributors compared to the previous year.
72% of companies that did business with Homeplus, which is having difficulties in normalizing management, responded that they had suffered damage due to delayed payment settlement.
The win-win cooperation plan most desired by stores was a reduction or expansion of fees.
On the 4th, the Korea Federation of Small and Medium Businesses announced the results of the '2026 Survey on Transactions of Small and Medium Businesses with Offline Large-Scale Distribution Companies' conducted on 900 small and medium-sized businesses from July to September.
The subjects of the investigation are small and medium-sized businesses with stores in five department stores, including Galleria, Lotte, Shinsegae [004170], Hyundai, and AK Plaza, and four large supermarkets, including Lotte Mart, E-Mart [139480], Hanaro Mart, and Homeplus, with 100 stores for each distributor.
◇ 63.0% of Homeple stores have ‘reduced sales’… The reason for the decline in department store sales is 'online shopping'
According to the survey, 37.0% of companies responded that sales through large supermarkets decreased compared to the previous year. Clothing companies accounted for more than half, at 53.1%.
By distribution company, Homeplus stores had the highest response rate of decreased sales at 63.0%. This was followed by Lotte Mart (31.0%), E-Mart (28.0%), and Hanaro Mart (26.0%).
Among department store stores, 21.0% reported a decrease in sales through department stores. 57.1% of these companies cited changes in consumption trends, such as increased online shopping, and sluggish domestic demand as the main causes.
In particular, 72% of small and medium-sized businesses that did business with Homeplus responded that they experienced damage due to changes in operational strategies such as store reductions and store closures at large supermarkets. All of these companies cited ‘delay in payment settlement’ as the type of damage.
In the same question, E-Mart had 2%, Lotte Mart had 8%, and Hanaro Mart had 6%, which was significantly lower than Homeplus.
In addition, 18 of the 20 companies that experienced unfair transactions and unfair practices from major supermarkets did business with Homeplus.
The average sales commission rate borne by small and medium-sized businesses in special contract purchase and lease transactions was 26.1% for department stores and 20.2% for large supermarkets. The sales commission rate is calculated by dividing the commission plus other costs such as sales promotion costs and logistics and delivery costs by the sales price.
Department store sales commission rates were high for cosmetics, fashion, and clothing items. The highest commission rate by company was 38.0% for Hyundai, 36.0% for AK and Galleria each, 35.0% for Shinsegae, and 33.0% for Lotte.
Sales commission rates at large supermarkets were highest for sports and leisure goods and clothing items. The highest commission rate by company was Lotte Mart (26.0%), Homeplus (25.0%), and E-Mart and Hanaro Mart (20.0%).
In the case of direct purchase transactions, the average margin rate of department stores was highest for fashion and clothing items, and the highest margin rate by company was Lotte (33.3%), AK, Galleria, and Hyundai (30.0%), and Shinsegae (26.0%).
The average margin rate of large supermarkets was highest for books, culture, and musical instruments. The highest margin rate by company was Lotte Mart (46.7%), E-Mart, Homeplus, and Hanaro Mart (40.0%), and the lowest margin rate was 10.0% for all companies.
◇ The most desired coexistence is a reduction in fees... 11.8% “Conditions for entering large supermarkets are worsening”
As for the area in which win-win cooperation is most desired, 43.0% of department store stores and 37.5% of hypermarket stores selected a fee reduction. The response that they felt the win-win cooperation between distribution companies was 36.2% at department stores and 29.5% at large supermarkets.
11.8% of companies responded that conditions for opening large supermarkets had worsened. 53.2% of the 47 stores that felt their store opening conditions were worsening cited the fact that the sales commission rate or sales incentive rate increased when renewing the contract as the reason.
Last year, 20 companies, or 5.0%, experienced unfair transactions or unfair practices while doing business with large supermarkets. Of these, 90.0% were companies that experienced delays in settlement of delivery payments with Homeplus.
Regarding the store opening pattern of the responding companies, department stores had the largest number of special contract purchases (76.0%), while large supermarkets had direct purchases (91.0%).
Special contract purchase is a method in which a distributor purchases products on credit under the condition that unsold products can be returned, then deducts a portion of the sales revenue and pays the price to the supplier. Direct purchasing refers to a method in which a distributor assumes sales responsibility for unsold products and purchases the products.
Kim Hee-jung, head of the economic policy division of the Korea Federation of SMEs and Startups, said, "Sales of stores are decreasing due to the growth of the online market and sluggish domestic demand, but the burden of commissions still remains. A plan must be prepared to substantially alleviate the burden on stores."
