▲ Citizens shopping at a department store
Department store sales in the first half of this year rose by more than 20%, driven by a surge in foreign shoppers and an expansion in sales of overseas famous brands (luxury goods), data showed.
The Ministry of Trade, Industry and Energy announced today (July 29) that the total sales of 26 major distributors for the first half of the year increased by 7.3% compared to the previous year.
Offline sales grew by 6.2%, while online sales increased by 8.1%.
In the offline sector, department stores, which saw a mere 0.5% growth in sales during the first half of last year, surged 20.1% this year.
Improved consumer sentiment and an increase in sales from foreign tourists were cited as the background for the performance growth.
In particular, the sales growth rate of overseas famous brands at department stores recorded the 20% to 30% range throughout all six months of the first half.
Last month, sales were tallied at a 34.3% increase compared to the same period last year.
Convenience store sales for the first half of the year rose by 3.7%.
This is interpreted as a recovery in growth momentum supported by the base effect from the previous year's negative growth (-1.0%) and early heat.
On the other hand, sales at large discount stores and super supermarkets (SSM) decreased by 7.3% and 6.6%, respectively, as sluggish sales in the food category continued.
Large discount stores have recorded negative growth for nine consecutive quarters starting from the second quarter of 2024, while SSMs have been in the minus for four consecutive quarters starting from the third quarter of last year.
Online retail showed an upward trend, establishing itself as a "grocery shopping channel" where consumers purchase food.
By product category, sales of overseas famous brands saw the largest increase across the entire retail industry at 30.8%, while home appliances and culture (9.7%), fashion and general goods (8.2%), food (5.0%), and household goods and living (6.3%) sectors also grew evenly.
In the food category, online sales increased by 11.0%, while offline sales decreased by 0.5%.
Looking at the performance for June, total sales increased by 9.5% (offline 6.4%, online 11.7%) compared to the same month last year.
Sales at department stores and convenience stores increased by 22.2% and 5.1% respectively, maintaining a positive streak for 12 consecutive months, whereas large discount stores (-10.5%) and SSMs (-10.8%) could not escape sluggishness.
The sales share by business type in June was in the order of online (60.4%), department stores (15.2%), convenience stores (15.0%), large discount stores (7.5%), and SSM (1.9%).
The Ministry compiles and announces sales trends every month for 15 offline retailers, including department stores (Lotte, Hyundai, Shinsegae), large discount stores (E-Mart, Homeplus, Lotte Mart, Nonghyup Hanaro Mart), convenience stores (GS25, CU, 7-Eleven, E-Mart 24), and SSMs (E-Mart Everyday, Lotte Super, GS The Fresh, Homeplus Express), along with 11 online retailers such as SSG, Coupang, and Naver.
(Photo: Yonhap News)
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