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[Courtesy of CJ Olive Young Corp.] |
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CJ Olive Young is set to enhance its quick commerce service by expanding its urban logistics hubs, known as Micro Fulfillment Centers (MFCs), to the Yeongnam region. This move aims to ensure that ordered products are delivered within an hour.
On Monday, Olive Young announced it completed a trial run for its new ‘MFC Haeundae’ in Busan and its full-scale operation. This marks the first time an Olive Young MFC has been established outside the Seoul metropolitan area.
The MFC Haeundae spans an area of 992 square meters and serves the eastern region of Busan, including Dongnae-gu, Suyeong-gu, Yeonje-gu, and Haeundae-gu. It handles deliveries for Olive Young’s same-day delivery service and stores inventory for nearby retail locations and can process up to 6,000 deliveries per day.
Olive Young has been at the forefront of delivery innovation in the Korean retail industry since introducing the same-day delivery service in late 2018, which guarantees delivery within an hour of ordering. The service gained significant traction, particularly during the Covid-19 pandemic, as the demand for contactless shopping surged. Sales from this service grew fivefold annually on average from 2019 to 2023.
The company plans to bolster its quick commerce competitiveness by expanding its MFC network to major metropolitan cities and regional towns across the country.
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