Online boom sees South Korean retail sales surge in September
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South Korean retail sales rose by 8.5 percent year on year in September as online stores enjoyed brisk sales amid the new coronavirus pandemic, government data shows.
The combined sales of 26 major offline and online retailers reached US$10 billion last month, up from $9.87 billion won in September last year, according to the data compiled by the Ministry of Trade, Industry, and Energy.
Online platforms led the overall growth, with their revenue advancing 20 percent over the period, the data showed, apparently as people purchased more goods through such stores amid the country’s social distancing scheme.
Sales of foodstuffs from online stores jumped 60.2 percent, while those of electronic goods and daily products advanced 26 percent and 14.7 percent, respectively.
Due to the Covid-19 pandemic, however, sales of tour packages and concert tickets dipped 12.3 percent, while those of fashion items also moved down 1.6 percent.
Sales from offline stores edged up 1 percent as people purchased more gifts to celebrate the Chuseok holiday, which ran from late September to early this month.
Convenience stores saw their sales improve 2.3 percent, due to higher sales of tobacco products and alcohol.
Sales from supermarkets also climbed 5.3 percent on the back of gift sales.
Department stores, on the other hand, saw their sales drop 6.2 percent due to sluggish demand for fashion goods.
In the first six months of the year, the combined retail sales reached $59.1 billion, up 3.7 percent from the previous year. Shipments by online stores advanced 17.5 percent, while those of offline stores dipped 6 percent.
Last year, South Korean retail sales rose by 4.8 percent year-on-year, with online shopping up 14.2 percent, and offline down 0.9 percent.
Questions & Answers
Q.Which specific categories of goods saw the most significant sales increases through online platforms in September?
Which specific categories of goods saw the most significant sales increases through online platforms in September?
Online sales of foodstuffs jumped by 60.2 percent. Electronic goods increased by 26 percent, and daily products saw a rise of 14.7 percent, demonstrating strong growth in these areas during the period.
Q.How did department stores perform in September, and what was the main reason for their sales trend?
How did department stores perform in September, and what was the main reason for their sales trend?
Department store sales dropped by 6.2 percent in September. This decline was attributed to sluggish demand for fashion goods, indicating a shift in consumer spending habits during the pandemic.
Q.What was the overall performance of offline retail stores in September, and what contributed to this trend?
What was the overall performance of offline retail stores in September, and what contributed to this trend?
Offline store sales edged up by 1 percent in September. This modest increase was mainly due to people purchasing more gifts for the Chuseok holiday, which occurred during that period.
Q.How did the growth rate of online retail compare to offline retail for the first six months of the year?
How did the growth rate of online retail compare to offline retail for the first six months of the year?
For the first six months of the year, shipments by online stores advanced by 17.5 percent. In contrast, offline stores experienced a decline in shipments of 6 percent, highlighting a clear divergence in growth.
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