Relaxation of Restrictions on Dawn Deliveries from Large Supermarkets Causes Excitement in Distribution and Delivery Stocks
The South Korean government has agreed to amend laws to allow dawn deliveries from large supermarkets, leading to a rise in stock prices for logistics-related companies.
The South Korean government has taken significant steps to amend legislation that would enable large supermarkets and superstore operators to offer dawn deliveries. This decision, reached in agreement with the ruling Democratic Party and the Blue House, aims to enhance the competitiveness of the retail sector by allowing quicker delivery options. The anticipation of such regulatory changes has already begun to reflect in the stock market, where companies involved in distribution and logistics are witnessing substantial increases in their stock prices.
On November 11, stocks such as CJ Logistics (CJėķķµģ“), which rose by 6.58% to close at 145,700 won, and HanJin, which saw a 9.27% increase to 22,400 won, indicate investors' optimism about the revitalization of dawn delivery services. The surge in CJ's stock also followed a previous spike of 16.74% in the prices from the day before. Analysts suggest that the loosening of restrictions combined with the recent privacy incident at Coupang, a major competitor, has fostered a favorable market sentiment for logistic companies expecting increased volumes from dawn deliveries.
The broader retail sector has also benefited from this news, with shares of large retailers like Emart climbing by 8.5% to 127,600 won, and Lotte Shopping experiencing a 1.5% increase to 115,200 won. Market analysts believe that the optimism around reduced regulatory constraints for dawn deliveries and the closure of Homeplus stores is contributing to this stock market rally within the retail sector. Additionally, stakeholders are noting expectations of improvement in duty-free and department store performance due to rising foreign visitor numbers, adding to the positive outlook for the market as a whole.