Daiso, Korea's leading discount retailer, recorded its best-ever monthly performance in March amid heightened economic uncertainty driven by high inflation and a weak won following the U.S.-Iran war.
The trend of "recession spending"—consumers seeking cheaper products as the economy worsens—has positioned Daiso as a clear beneficiary.
Daiso's estimated credit card payments reached approximately 230.7 billion won in March, marking an all-time monthly high, according to data from Mobile Index released Saturday. The figure surpassed the previous record of 216 billion won set in October last year and was significantly higher than January's 207.2 billion won and February's 198.9 billion won.
Online growth has been even more pronounced. According to WiseApp Retail, Daiso Mall's monthly active users (MAU) reached 5.47 million in March, up more than 500,000 from 4.95 million in January, demonstrating the retailer's growing presence in the online market.
Industry analysts say the deteriorating external economic conditions have actually worked in Daiso's favor. Consumers concerned about prolonged high inflation and exchange rate volatility triggered by the U.S.-Iran war in March have turned to Daiso to cut living expenses, they noted.
"As the recession deepens, ultra-low-price platforms like Daiso will only grow more influential, especially among working-class consumers," a retail industry official said. "While maintaining its offline strengths, Daiso is rapidly absorbing online users, putting it in a position for a quantum leap in performance for the foreseeable future."
Daiso plans to significantly expand its ultra-value product lineup in April and May. The retailer will partner with Kleannara to launch sanitary pads at a promotional price of 1,000 won for 10 pads, part of an aggressive marketing campaign aimed at easing household budget pressures.
With strong performance continuing, Daiso's annual revenue is expected to reach new heights. After estimated sales of approximately 4.5 trillion won last year, analysts expect the retailer to comfortably enter the "5 trillion won revenue era" this year.
