Korea retail sales slide
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Korea retail sales took a surprise turn for the worst in December after three consecutive months of solid growth.
Reported sales by department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co show a 5.7 per cent fall year-on-year, according to figures released by the the Ministry of Trade, Industry and Energy on Tuesday.
For the whole 2015 year, department store sales fell a modest 1.2 per cent, mainly due to the outbreak of Mers mid-year, and a rise in online shopping.
The government attributed the December fall to warmer weather compared with the previous year, which may prompt one to speculate on January’s figures given the unusual cold snap hitting the country this month. The warmer climate meant fewer sales of winter clothing.
Sales of luxury watches, jewellery and household electronics also fell.
The December fall was the largest monthly year-on-year drop since 6.5 per cent last August. Sales rose by 1 per cent in November.
Sales at South Korea’s major discount department stores fell 5.1 per cent, the third consecutive monthly decline and the largest since August.
For the whole of 2015, discount department store sales fell 2.1 per cent.
The Ministry said discounters’ December performance was affected by the warm weather and softening demand for food products.
Questions & Answers
Q.What was the overall performance of department store sales in Korea for the entire 2015 year?
What was the overall performance of department store sales in Korea for the entire 2015 year?
For the whole of 2015, department store sales saw a modest decrease of 1.2 per cent. This was primarily attributed to the Mers outbreak mid-year and a general increase in online shopping activity.
Q.What factors did the government identify as contributing to the December retail sales decline?
What factors did the government identify as contributing to the December retail sales decline?
The government attributed the December fall to warmer weather compared with the previous year, which led to fewer sales of winter clothing. Softening demand for food products also affected discounters' performance.
Q.Which specific product categories saw a decrease in sales during December?
Which specific product categories saw a decrease in sales during December?
During December, sales of winter clothing were lower due to the warm weather. Also, sales of luxury watches, jewellery, and household electronics also experienced a fall that month.
Q.How did discount department stores perform compared to other department stores in December?
How did discount department stores perform compared to other department stores in December?
Sales at South Korea's major discount department stores fell by 5.1 per cent in December. This marked their third consecutive monthly decline and was the largest drop since August, similar to the general department store performance.