Heat Wave Boosts Retail Sales

In this article (4)
A prolonged heat wave in South Korea is boosting sales of local retailers, cafes, hotels and theaters as people flock to those air-conditioned places to get relief, industry sources said Tuesday.
The entire country has been hit by the scorching weather for the past two weeks, with daytime highs soaring above 35 degrees in Seoul and most other regions and the mercury staying above 25 C even at night.
According to Lotte Department Store, its same-store sales climbed 4.1 percent between July 25 and Sunday from the corresponding period a year earlier.
Sales of consumer electronics products rose by the highest rate of 24.5 percent, with those at food courts expanding 14.1 percent.
“Sales of air conditioners and electric fans recorded a strong on-year increase, leading the overall gain in shipments of home appliances,” a Lotte Department Store official said.
Discount giant E-Mart estimated its July sales have gone up 8 percent from the same month a year ago. In the first seven days of this month, sales of air conditioners soared 53 percent on-year with peaches and other fruits also chalking up brisk sales.
The heat wave also comes as a boon to Seoul’s luxury hotels with swimming pools as an increasing number of people spend their summer vacations there instead of going to the beach or other places.
Lotte Hotel Seoul, one of the country’s best luxury hotels, said sales of its “summer package” doubled between July 25 and Sunday from the same period a year earlier. The Plaza Hotel Seoul also posted a 40 percent surge in sales of its summer package.
In addition, coffee shops and cinemas have enjoyed booming trade for the past several weeks as more people visited them to seek relief from the searing heat, according to the sources. “More people are expected to flock to air-conditioned places to cool off as the heat wave is forecast to last for some time,” an industry official said.
The Korea Meteorological Administration forecast the heat wave gripping the country is likely to continue till mid-August with daytime highs hovering around 35 C.
Questions & Answers
Q.Which specific product categories saw the most significant sales increases at Lotte Department Store during this period?
Which specific product categories saw the most significant sales increases at Lotte Department Store during this period?
At Lotte Department Store, consumer electronics products saw the highest sales increase, rising by 24.5 percent. Sales at food courts also expanded significantly, growing by 14.1 percent.
Q.How did hotels respond to the heatwave, and what impact did this have on their business?
How did hotels respond to the heatwave, and what impact did this have on their business?
Luxury hotels with swimming pools offered 'summer packages' which proved popular. For instance, Lotte Hotel Seoul saw sales of its summer package double, while The Plaza Hotel Seoul reported a 40 percent surge.
Q.Which other types of businesses, besides traditional retailers, have benefited from the extreme weather?
Which other types of businesses, besides traditional retailers, have benefited from the extreme weather?
Cafes, hotels, and theaters have also enjoyed a boost in trade. People are flocking to these air-conditioned venues, with coffee shops and cinemas experiencing booming business over recent weeks.
Reader pulse
Will this boost last?
22,369 votes so far