Business · Companies · 4 hrs ago
Small Firms Pay Average 26.1% of Department Store Sales in Fees and Costs
A survey of 900 small businesses in South Korea found that stores selling through department stores and large supermarkets face substantial costs.
On average, department store sellers paid 26.1% of sales in fees and related costs, while sellers at large supermarkets paid 20.2%.
The figures include sales commissions and other costs such as promotion and delivery.
More than one in three supermarket sellers reported lower sales than the previous year, and the share was 53.1% among clothing businesses.
Among businesses selling through Homeplus, 63% reported lower sales, and 72 of the 100 surveyed said changes to store operations had harmed them through delayed payments.
Lower commissions were the most requested support, cited by 43% of department store sellers and 37.5% of supermarket sellers.
The survey called for measures to ease businesses’ costs, but it gave no timetable for any changes.
Small businesses operating in department stores pay an average 26.1% of sales in commissions and related costs, according to a survey by the Korea Federation of SMEs.
The comparable average for businesses in large supermarkets was 20.2%.
The survey covered 900 small businesses operating in five department store chains and four large supermarket chains from July to September 2026.
Among department store retailers, the highest reported maximum commission rate was 38% at Hyundai Department Store.
Businesses most often named lower fees as the support they wanted from retailers.
- Who
- Small businesses operating in department stores and large supermarkets.
- What
- A survey found that department store businesses paid an average 26.1% of sales in commissions and related costs; the average for large supermarket businesses was 20.2%.
- When
- The survey was conducted from July to September 2026 and announced on November 4, 2026.
- Where
- Five department store chains and four large supermarket chains in South Korea.
- Why
- Businesses cited online shopping growth and weak domestic demand as reasons for falling sales, while the article says fee burdens remain.
This story does not have two clearly opposing sides.
The survey covered 900 small businesses operating in five department stores and four large supermarkets.
The Korea Federation of SMEs announced the survey results.
Hankyung published its report on the findings.
- Department store average
- 26.1% of sales in commissions and related costs
- Large supermarket average
- 20.2% of sales in commissions and related costs
- Survey sample
- 900 small businesses
- Department store chains
- Galleria, Lotte, Shinsegae, Hyundai and AK Plaza
- Large supermarket chains
- Lotte Mart, E-Mart, Hanaro Mart and Homeplus
- Highest department store maximum commission rate
- 38% at Hyundai Department Store
1 source
What people are saying
Sales at tenant businesses are declining due to the growth of the online market and weak domestic demand, but the burden of commissions remains.
Measures must be prepared to substantially ease the burden on tenant businesses.