The Ministry of Trade, Industry and Energy (MOTIE) announced on December 29 that Korea’s retail sales in November gained a year-on-year growth of 8.4 percent.
Both physical and online retailers advanced in sales, up 8.5 percent and 8.3 percent, respectively.
The Ministry releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are physical retailers: three department store chains, three hypermarket chains, three convenience store chains, and four “super supermarket” (SSM) operators. The remaining twelve are online retailers.
Sales at offline stores expanded 8.5 percent compared to the same period last year. Inflation and comparably warmer weather led to lower demand for seasonal goods and clothing, but on the whole, sales were boosted by large-scale discount promotions and World Cup 2022 seasonal demand.
Hypermarket chains grew 9.2 percent in sales as large-scale discount promotions led to greater purchases in daily necessities, raising sales of categories like home/living (up 10.4 percent) and food products (up 12.0 percent).
Sales at SSMs rose 7.1 percent on the backs of the combination of the World Cup 2022 special effect and people’s tendency to eat more meals at home due to inflation. As a result, processed food products (up 16.4 percent) and fresh/cooked foods (up 7.2 percent) surged in sales.
Department stores saw slow demand for clothing owing to warmer temperatures compared to those of the previous year, with women’s suits (up 1.8 percent), women’s casual (up 3.9 percent), and men’s clothing (down 0.4 percent) recording sluggish sales. A wide variety of sales promotions offset the lag, maintaining department sales growth at 3.7 percent.
Convenience store chains (up 13.8 percent) enjoyed robust sales growth across all categories as inflation and proximity shopping trends attracted more shoppers.
Online retail sales jumped 8.3 percent as e-coupons and overseas travel packages met high demand, boosting sales of services/other (up 30.7 percent) and large-scale discount online purchases.
Inflation drove up consumer’s preferences for home-cooked meals and convenience foods, and World Cup 2022 and warmer weather increased outdoor activities, raising sales of food products (up 17.6 percent) and cosmetics (up 16.1 percent).
Source: Ministry of Trade, Industry and Energy