South Korea’s traditional retail giants are rapidly losing ground to e-commerce competitors, a shift exemplified by Homeplus filing for court receivership on Tuesday. While the country’s retail industry has long been dominated by brick-and-mortar giants like E-Mart, Lotte Mart and Homeplus, their inability to aggressively adapt to digital commerce has left them vulnerable.

Homeplus, South Korea’s second-largest hypermarket chain, is now the latest casualty of an accelerating transformation in consumer behavior, rising logistics costs and fierce competition from domestic and Chinese e-commerce players.