Mobile retail thrives as rural populations shrink

By Ko Dong-hwan

Trucks refurbished as convenience stores, or simply loaded with various food and retail items have become a new way to cater to regional areas in the country, where low birthrates and the exodus of younger generations are leading to declining local populations.

BGF Retail, operator of the country’s largest convenience brand CU, launched a mobile CU store to cater to low-populated counties in North Jeolla Province. The strategy came after dwindling populations across Korea were increasingly driving local supermarkets out of business. The situation has led local residents to become "traveling consumers," as they must trek to other regions just to shop for basic everyday necessities.

The mobile CU store, a modified 3.5-ton truck, began its monthlong operations on Thursday. Every week, it travels 700 kilometers across Jinan and Imsil Counties in the province, carrying 170 items like food, fruits and vegetables. The store also sells health care products, since the majority of its customers are older adults. The company had consulted the North Jeolla provincial government to check what retail items are in high demand in those counties. It then stocked a curated list of items for the store.

A section inside the store is for refrigerated products, the truck is also equipped with shelves, freezers and a cash register. It is manned by a cashier.

BGF Retail previously introduced mobile stores at public events that draw massive crowds like sports events or concerts. However, this is the first time that it will cater to older adults in low-populated areas.

The company launched the venture after the Ministry of Food and Drug Safety in October mitigated the country’s enforcement decree of the Livestock Products Sanitary Control Act. This allowed the sales of fresh meat from mobile stores equipped with a refrigerator and a freezer.

“We are implementing new retail techniques for our mobile convenience stores to strengthen their public roles,” a BGF Retail official said. “It is our preemptive countermeasure against the future where the aging society and crumbling regional economies will likely generate more traveling consumers.”

Mobile markets have long reached isolated consumers in regional areas. A social cooperative in Myoryang neighborhood in Yeonggwang County in South Jeolla Province has been running a similar truck for the past decade. Here, more than 45 percent of its 1,700 population are aged 65 or older. The cooperative also serves 41 other villages in the province, dropping by once every week. Jangsu and Wanju Counties in North Jeolla have also been introduced to a similar service for older adult residents.