Korean retail sales recover post MERS

Korean retail sales are returning to normal as the impact of the MERS outbreak fades.

Data released by South Korea’s finance ministry shows combined sales at department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co rose 0.9 per cent in July, year on year.

That contrasts with a drop of 11.9 per cent in June, as shoppers stayed home to avoid possible exposure to the Middle East Respiratory Syndrome (MERS) virus.

South Korea’s government has officially declared the MERS outbreak over.

Sales at major discount store chains also improved, but still recorded a year on year decline. In July they fell 1.9 per cent which compares favourably with a fall of 10.2 per cent in June.

In its statement, the ministry said while consumption was showing signs of a recovery, there was “insufficient” improvement in the service industry.