Record slump in Korea retail sales
In this article (4)
Korea’s department stores suffered their worst sales drop in history in January.
According to preliminary government data, sales fell 9.7 per cent year-on-year, the worst figure since record taking commenced in 2005.
January marked the fifth consecutive monthly year-on-year fall.
Discount stores fared the worst, posting a massive 20.7 per cent, according to the finance ministry. Remarkably, that’s not a record in itself – in February 2014, they fell 23.1 per cent.
Korea retail sales data is collated by the government based on reported sales from the three department store conglomerates – Hyundai Department Store, Lotte Shopping and Shinsegae. They run discount formats and full scale department store chains.
The ministry attributed January’s weak sales in part to the change in the timing of the Lunar New Year holidays, which fell in late January last year but in the middle of February this year.
Questions & Answers
Q.Which specific retail formats experienced the most significant sales decline?
Which specific retail formats experienced the most significant sales decline?
Discount stores recorded the worst performance in January, experiencing a substantial 20.7 per cent drop in sales year-on-year. This was a larger fall compared to department stores overall, though not a record for discount stores specifically.
Q.What is the primary reason the finance ministry gave for the poor January sales figures?
What is the primary reason the finance ministry gave for the poor January sales figures?
The ministry attributed the weak sales in January partly to the timing of the Lunar New Year holidays. Last year, the holidays occurred in late January, but this year they fell in the middle of February, impacting sales comparison.
Q.How is the Korea retail sales data compiled by the government?
How is the Korea retail sales data compiled by the government?
The government collates the Korea retail sales data based on reported sales from the three major department store conglomerates: Hyundai Department Store, Lotte Shopping, and Shinsegae. These groups operate both discount formats and full-scale department store chains.
Reader pulse
What's the main driver for the sales slump?
18,831 votes so far
Tags