Lotte Mart Slashes Lobster Price 50% to Counter Supply Squeeze From High Exchange Rate and Freight Costs

The Quick Take

• Lotte Mart is selling Canadian live lobsters at up to 50% discount from May 28 to June 2, deploying bulk procurement to counter a supply squeeze
• Lobster prices have risen sharply due to high exchange rates, rising air freight costs, and reduced local supply, with wholesale prices up 12.8% YoY
• The promotional strategy reflects Lotte Mart's ability to use its procurement scale to absorb cost inflation and drive customer traffic amid Korea's consumer price pressures

South Korean retail giant Lotte Mart (a subsidiary of Lotte Shopping, KRX-listed) is selling Canadian live lobsters at up to 50% discount across all stores from May 28 to June 2, responding to a significant supply squeeze driven by high exchange rates, elevated air freight costs, and reduced supply from Canadian waters. Wholesale prices for live lobster had risen 12.8% YoY to a high of KRW 57,000 per kilogram by May, according to data from Noryangjin Fish Market.

The promotion demonstrates Lotte Mart's procurement scale as a competitive weapon in Korea's intensifying retail price war. By securing large-volume overseas supply at favourable terms, Lotte Mart can absorb cost inflation that hits smaller retailers more acutely. This is a recurring pattern for Korean conglomerate-backed retailers in commodities under price pressure — Emart (Shinsegae Group) and Home Plus face similar dynamics. The underlying supply squeeze in Canadian lobster signals broader import cost pressures from elevated KRW/USD exchange rates affecting Korean consumer goods generally.

Watch for whether the Lotte Mart promotion drives measurable foot traffic gains and whether Emart or Home Plus respond with competing promotions. The macro variable: KRW/USD exchange rate and Canadian export supply — if the Korean won remains weak and Canadian lobster harvest volumes stay constrained, structural import cost pressures on Korean retailers persist beyond this single promotion.

Synthesized from 2 sources.