Olive Young’s growth spills over to nearby shops

New Olive Young stores are lifting sales at nearby traditional markets and restaurants, according to a study led by Hanbat National University professor Lee Sung-ho.

The study found that sales at traditional markets within 1 kilometer of new branches rose 7.9-18.3 percent. Restaurant sales increased 8.8-18.3 percent, while bakeries, coffee shops and fast-food outlets posted gains of 8.3-17.3 percent.

The researchers described Olive Young as an anchor retailer that draws shoppers to surrounding businesses and encourages them to stay longer.

Data from the area around its Gwangjang Market branch, which opened in April, points to a similar trend. According to Global Tax Free, spending by foreign shoppers reached 6 billion won ($4.4 million) in May-August, up from 5.3 billion won in January-April. Transactions rose to 57,677 from 38,824.

The figures do not capture all spending, as GTF data excludes small cash purchases and transactions at stores without its terminals, both common at traditional markets.

“Visits by people in their 20s and 30s and international visitors had increased significantly, boosting spending in the market,” said Lee Bu-young, head of the Gwangjang Market Merchants’ Association. “Olive Young’s product lineup largely does not overlap with existing market offerings, creating a synergistic effect.”

Olive Young is also expanding stores outside the Seoul metropolitan area. Its Nampo Town store in Busan ranked first nationwide in sales to domestic shoppers during its September sale following an expansion in August. Buyer numbers doubled from the same promotion last year.

The expanded store is expected to attract more visitors to nearby Jagalchi and Gukje markets, both within 500 meters.

Olive Young plans to invest 123.8 billion won this year in shopping infrastructure outside the capital region.

“We have confirmed a virtuous circle in which stores located in key commercial districts help increase sales for nearby small businesses,” an Olive Young official said. “We will continue innovating our offline stores to grow alongside local communities.”