Business · Companies · 4 hrs ago

Small Firms Pay Average 26.1% of Department Store Sales in Fees and Costs

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.

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What people are saying

Kim Hee-jungHead of the Economic Policy Division at the Korea Federation of SMEs
Sales at tenant businesses are declining due to the growth of the online market and weak domestic demand, but the burden of commissions remains.
via Hankyung
Measures must be prepared to substantially ease the burden on tenant businesses.
via Hankyung