Retail Sales Hit Hard by MERS
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The ripple effect of the Middle East respiratory syndrome (MERS) is spreading throughout Korea’s retail industry, including department stores, discount stores, restaurants, and cosmetic shops.
Amid rising concerns about possible infection by the MERS virus, an increasing number of consumers are avoiding crowded places, dealing a blow against the sales of offline stores, including department stores.
As the MERS crisis prolongs, the number of foreign tourists, including Chinese ones, declines, giving a negative impact on the cosmetics industry. According to industry sources on June 5, Lotte Department Store suffered an 8.4-percent decline in sales during the period from June 1 to 4, compared to a year ago.
Shinsegae Department Store also suffered a 3.7-percent decline in sales during the same period. E-Mart, the largest discount store in Korea, recorded a 7.8-percent plunge in sales during the period. In particular, its outlet in Dongtan and Pyeongtaek, in southern Gyeonggi Province where the highest number of MERS cases were reported, suffered a 19.7-percent and a 16.2-percent plunge in sales during the period.
Questions & Answers
Q.Which specific regions or stores have experienced the most significant sales declines due to MERS?
Which specific regions or stores have experienced the most significant sales declines due to MERS?
E-Mart outlets in Dongtan and Pyeongtaek, southern Gyeonggi Province, saw the largest plunges. Sales dropped by 19.7% and 16.2% respectively during the June 1-4 period, where the highest number of MERS cases were reported.
Q.Beyond department and discount stores, what other retail sectors are being negatively affected by the MERS outbreak?
Beyond department and discount stores, what other retail sectors are being negatively affected by the MERS outbreak?
The ripple effect of MERS is also impacting restaurants and cosmetic shops. The decline in foreign tourists, particularly from China, is specifically giving a negative impact to the cosmetics industry.
Q.What was the sales performance for other major retail chains mentioned in the article during the affected period?
What was the sales performance for other major retail chains mentioned in the article during the affected period?
Lotte Department Store experienced an 8.4% decline in sales, while Shinsegae Department Store saw a 3.7% decrease. E-Mart, Korea's largest discount store, recorded an overall 7.8% drop in sales from June 1 to 4.
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