[Exclusive] Olive Young and Daiso Arrival Drives Neighborhood Sales Up Over 20%

Sales at Nearby Stores Within 200 Meters Rise After Olive Young Opens

Eyewear Store Sales Up 22% Within 200 Meters of New Daiso Outlets

Daiso as a "Treasure Hunt," Olive Young as a "Trend Discovery" Destination

"Anchors" Shift from

After the entry of the health and beauty (H&B) store CJ Olive Young, sales at surrounding stores within a 200-meter radius increased by nearly 23% compared to before its opening. In areas where the fixed-price household goods retailer Daiso opened a store, optician shop sales within 200 meters grew by more than 22%. These findings run counter to conventional concerns that the entry of large retailers would negatively affect sales for nearby small business owners. There is now analysis suggesting that Olive Young and Daiso are playing the role of new "anchor stores"—stores that draw consumers into a commercial area—by attracting more foot traffic to surrounding offline shopping districts.

On August 18, The Asia Business Daily obtained the "Study on Revitalizing Offline Commercial Districts through Anchor Stores," which analyzed the impact of Olive Young and Daiso on surrounding commercial areas using card sales data and consumer surveys. The research was jointly conducted by Chunhan Cho, Professor at Gyeonggi University of Science and Technology, Jinhyung Seo, Professor at Sogang University, and Seongho Lee and Jin Choi, Professors at Hanbat National University.

The researchers surveyed 809 consumers about their usage patterns across 11 product categories and 14 retail channels. They also compared Shinhan Card sales at stores near newly opened Olive Young and Daiso locations for one year before and after opening, from 2021 through June of last year.

CJ Olive Young Myeongdong Branch (left), Daiso Gyeongbokgung Branch

Olive Young and Daiso are representative examples of channels that have quickly scaled up in the offline retail market. Olive Young’s sales grew from KRW 1.96 trillion in 2019 to KRW 5.8335 trillion last year, tripling in just six years. Over the same period, Daiso’s sales doubled from KRW 2.2362 trillion to KRW 4.5 trillion. As of last year, Olive Young had 1,381 stores, while Daiso had 1,600.

The research team focused on evaluating how Olive Young and Daiso influence the surrounding commercial districts. Traditionally, large-scale facilities such as department stores, big-box retailers, and cinemas played the "anchor store" role. Recently, however, relatively smaller stores like Daiso and Olive Young have become main destinations for consumers, functioning as new anchors in their neighborhoods. The study categorized big-box retailers as "traditional everyday shopping anchors," Daiso as a "household goods anchor," and Olive Young as a "specialized/exploration anchor."

Restaurants Around Olive Young Enjoyed Growth

The most notable changes were found around Olive Young locations. Analysis of 260 newly opened Olive Young stores showed that sales at businesses within a 200-meter radius increased by 22.9% compared to before opening. Sales at 200–400 meters increased by 13.0%, at 400–600 meters by 8.9%, and at 800 meters to 1 km by 7.9%. The further from Olive Young, the smaller the increase tended to be.

Consumers visiting Olive Young also spent at nearby businesses. Within 200 meters, restaurant and traditional market sales increased by 18.3% each, while sales at bakeries, coffee shops, and fast-food outlets rose by 17.3%. Pharmacies saw a 12.1% boost and convenience stores gained 8.7%. In contrast, sales at general merchandise stores decreased by 18.2%, H&B stores by 5.3%, and specialty cosmetics stores by 2.6%. In short, businesses competing directly with Olive Young experienced sales declines, but those with different purposes—such as restaurants and cafes—saw continued consumer spending. Over the same period, Daiso sales in the area also increased by 4.5%.

The effect varied by commercial area type. In tourist and downtown gathering districts, surrounding sales within 200 meters of new Olive Young stores rose by 26.9%, nearly double the 13.8% increase in neighborhood residential districts. Locations frequented by tourists and out-of-town visitors saw greater increases in nearby consumption.

Professor Cho stated, "Online, consumption ends once a customer purchases the necessary product, but offline, consumers may visit a store and then stop somewhere nearby to eat. Because many small businesses are clustered around Olive Young stores, the influx of Olive Young visitors alone seems to drive up local sales."

Unexpected results were found near Daiso locations. As Daiso expanded its product range, selling items including eyewear, flowers, and pet supplies, some small business owners had worried that sales at specialty stores would decline. The Korea Optometric Association argued that Daiso’s sale of KRW 1,000–5,000 eyeglass frames and sunglasses could increase competition for local opticians. Pet industry representatives also expressed concerns that the “pet zones” and expanded pet food sales could reduce the revenue of specialty shops.

However, sales at optician shops within 200 meters of new Daiso locations actually increased by 22.1%. Across the full 3-kilometer radius, sales rose by 4.8%. The pet sector saw a 29.5% increase within 200 meters and a 13.0% rise within 3 kilometers. In contrast, flower shop sales within 200 meters decreased by 5.5%, indicating differences by sector. In other words, the introduction of competing products by Daiso did not consistently reduce sales at nearby specialty stores. However, this Daiso card sales analysis was limited to three business sectors—eyewear, flowers, and pets. The researchers noted that they plan to present analyses of additional sectors in future work.

Daiso Offers "Treasure Hunt," Olive Young Taps "Trend Discovery"

The two channels also attract consumers in different ways. While Daiso is often associated with ultra-low prices, the survey found that the greatest appeal was its "fun of browsing." Daiso's “browsing/exploring” score was 78.7 out of 100, the highest among the seven retail channels in the survey. The "unplanned purchase" score was also highest at 71.7.

Professor Cho commented, "Our analysis of consumers found two core drivers: the expectation that they will find what they’re looking for, and the fun of discovering something new they hadn’t thought of." He described this as a "treasure hunt style of consumption."

Actual store visit frequency was also high: 41.2% of Daiso users visited 2–3 times a month, and 40.3% visited at least once a week. The research team classified Daiso as a "repeat visit" channel. As for Olive Young, customers frequently visited not only to buy beauty products, but to explore the latest items. Purchasing a specific item scored 74.5, browsing/exploring 73.2, self-care/satisfaction 72.7, and trend discovery 71.8. Professor Cho explained, "When seeking beauty products, consumers turn to Olive Young; for household and everyday goods, it’s Daiso. This pattern is now firmly established in offline shopping behavior."

Many Daiso users also shopped at Olive Young, but their reasons differed. Daiso shoppers bought household products, while Olive Young was the place for cosmetics and H&B items. The research team concluded that these two channels do not so much compete for the same customers as fulfill different consumption needs, leading to “parallel use.”

Each channel also played a distinct role by product category. Daiso was the primary destination for daily necessities, while Olive Young dominated for cosmetics and hair, body, and hygiene products. For fresh food, groceries, and ready-to-eat or instant meals, big-box retailers remained the most influential.

Does the Entry of Large Stores Shrink Neighborhood Business? Changing Commercial Districts

This study also stands out for viewing the decades-old conflict between large retailers and neighborhood businesses from a different angle. Whereas previous debates focused on how much large retailers took customers and sales from nearby small businesses, this one examined how a retail channel can attract people and trigger spending in surrounding businesses.

According to the study, restaurant, cafe, and traditional market sales increased around Olive Young. Even when Daiso began selling discount eyeglasses and pet products, sales at surrounding optician and pet-related shops also rose. Store size or retail format alone no longer explains the impact on surrounding business districts.

The boundaries between sales channels are also blurring. Even for cosmetics, products are now sold not only at H&B stores, but also through Daiso, convenience stores, big-box retailers, online platforms, and lifestyle shops. The researchers advised that policies and strategies to revitalize commercial districts should consider not just business type, but also the degree of product overlap, consumer visit purpose, distance between outlets, and the type of commercial area. The impact may differ depending on whether surrounding stores are in direct competition, or whether they mutually increase sales by attracting new foot traffic.

Professor Cho remarked, "Consumers now seek the joy of continually discovering new things as they walk through neighborhoods. That's also why Seongsu-dong is thriving—because there’s always something new nearby." He added, "Whereas large stores once anchored commercial districts, now the anchor is moving into neighborhood streets. In a situation where online and offline are competing, it’s important to foster variety that produces different visit motivations."

This content was produced with the assistance of AI translation services.