As inflation continues to weigh heavily on South Korean households, major retailers are adopting a “reverse pricing” strategy – setting a target sale price first and working backward to meet it – reshaping how goods are planned, priced and sold.

Rather than determining prices based on production costs and margins, companies like E-Mart, Lotte Mart, and CU are beginning with prices they believe customers will accept and adjusting costs and profits accordingly. The approach is gaining traction as consumers grow increasingly price-sensitive amid soaring living costs under the administration of President Lee Jae-myung.

E-Mart recently introduced a 5980-won (US$4.30) whisky, “Just for Highball,” aiming to match the price point of soju at local restaurants. Bottled in PET rather than glass to cut costs, the whisky can produce eight highball servings – each under 800 won.

In the cosmetics aisle, E-Mart’s collaboration with LG Household & Health Care produced a line of skincare products, “Glow:up by Beyond,” all priced at 4950 won. Streamlined packaging and AI-driven marketing helped maintain quality while slashing overhead. The product has sold over 32,000 units since its April debut, doubling skincare sales from the same period last year.

E-Mart’s private label, No Brand, also drew attention with its first-ever sneakers priced at 29,980 won, emphasising breathable materials and simplified design to stay under a 30,000-won consumer threshold.

Lotte Mart is also leveraging reverse pricing in food staples. It introduced 1000-won packs of tofu and bean sprouts in April by locking in bulk purchase deals with suppliers to maintain profitability. These items now rank among the top five best-sellers in their categories.

The chain’s “World Buffet” deli line offers over 40 international-style dishes priced at either 3000 or 4000 won. Lotte cut costs through bulk ingredient purchases and outsourcing prep work to lower-cost vendors, converting some items into heat-and-serve options. The initiative has driven significant cross-category sales, according to the company.

E-Land’s Kim’s Club pioneered the model with its “Deli by Ashley” line. The line’s 180 items – priced uniformly at 3990 won and inspired by the Ashley Queens buffet – have surpassed 5 million units sold within a year, recently hitting a daily sales average of 25,000. The company says it has driven store traffic up by over 20 per cent.

Convenience stores are also joining the trend. CU offers 880-won instant beef soup and 990-won snacks and produce. It recently added a 10-pack of capsule coffee priced at 2900 won. CU said it minimises marketing and profit margins to remove “price padding” and plans to expand its ultra-low-cost food offerings.

As retail margins tighten and consumer caution rises, reverse pricing is emerging not only as a survival strategy – but as a model for gaining trust and volume in Korea’s value-driven economy.

• This story was originally published on The Korea Bizwire.