Around 1:30 p.m. on the 7th, stepping onto the third floor of Lotte Mart's customer fulfillment center "Zeta Smart Center Busan" (hereinafter "the center") located in Gweseo-gu, Busan International Industrial Logistics City, one felt a chill despite the outdoor temperature reaching 35 degrees. The space was filled with the cold air of early winter at just above 5 degrees Celsius and the "whirring" sound of robots moving around. All processes from inbound to delivery are managed through a cold chain system.
In a space spanning approximately 3,000 pyeong (about 9,917 square meters), 240,000 grid-shaped rails were laid out densely like a chessboard. Picking robots called "BOTs" moved back and forth across them at speeds of 4 meters per second, transporting goods stored about 5 to 6 meters below the rails. Looking down, one could see fresh produce such as green onions and enoki mushrooms, along with paper towels and snacks like Corgi Corn.
The robots operate using AI (artificial intelligence). They communicate with the central control system 10 times per second to find optimal routes for transporting goods. Afterward, the goods are transferred to picking robot arms where they are automatically recognized and packaged. The center, covering a total floor area of 40,000 square meters (approximately 12,000 pyeong), can handle up to 35,000 items at once.
This center, built by Lotte Mart with an investment of 200 billion won, is the first automated logistics center combining Ocado's technology from the UK retail tech company with Lotte Mart's fresh food competitiveness. Lotte Mart established a partnership with Ocado in 2022 and completed the center after three years and seven months of preparation.
What Lotte Mart emphasizes most is "freshness." Cha Woo-cheol, CEO of Lotte Mart·Super, stated, "While typical fresh food logistics centers may expose products to the outside during certain processes, here the entire process from inbound to delivery operates under a complete cold system," adding, "We maintain the quality of fresh foods perfectly and deliver them on time."
Choosing Busan as the first stage was a decision made considering business performance and symbolism in the online grocery market. Lotte Group has high brand recognition in its hometown of Busan, and it is considered suitable for testing new logistics systems in regions outside the capital area where early-morning delivery by e-commerce platforms like Coupang and Kurly is already active.
The center also highlights product competitiveness. Lotte Mart's ability to source products connected with production sites nationwide and its processing and packaging capabilities through the center are key strengths. Jeong Jae-woo, head of Lotte Mart·Super's online business division, said, "Over 30 years of operating marts and supermarkets, Lotte Mart has connected more production sites than any other company and possesses the capability to directly process and package meat, vegetables, and fruits," emphasizing that they will provide seamless delivery to maintain the highest level of freshness.
Delivery options have also become more flexible. The center allows customers to select their desired delivery time in two-hour increments from 8 a.m. until midnight. Compared to existing store-based delivery, there are now more available time slots, enabling deliveries even during early morning hours.
Lotte Mart expects the center to serve as a hub that generates profitability for its online grocery business. Head Jeong predicted, "We aim to achieve the maximum processing capacity of 33,000 orders per day over five years and turn EBITDA profitable in the fifth year." Since last month's 28th, orders from 13 stores operating online services in Busan and Yeongnam have been transferred to this center. Despite not yet launching marketing campaigns, initial results are encouraging. Orders from existing customers increased by 30% compared to the previous month. Cha (CEO) emphasized, "We will deliver fresh produce from production sites on time to 40 thousand won households in Busan and the Yeongnam region, changing the paradigm of online grocery shopping in Korea."
in LIVING
