South Korea retail sales easing upwards

South Korean retailers are breathing a sigh of relief as consumers return to stores in the wake of the MERS scare receding.

South Korea retail sales rose 0.5 per cent in July to 30.14 trillion won (US$25.6 billion) after receding 0.6 per cent in June.

Statistics Korea said sales rose month on month as well as year on year.

“The fallout of the MERS outbreak that caused demand to slump seems to have receded in July, leading to a slight rise in consumer spending,” a spokesman for Statistics Korea said.

“While things have not returned to normal, sales are rising in areas that were most affected by the outbreak.”

The MERS outbreak hit in late May. Thirty-six people subsequently died and a further 186 were infected before the outbreak was brought under control and confirmed over by health officials in July.

The value of online transactions rose by 21.2 per cent, driven by sales of food and cosmetics as cautious shoppers opted to have products delivered rather than visit stores and risk exposure.

Online shopping accounted for 15.8 per cent total retail sales in July.

In stores, food and beverage sales rose 3.8 per cent year on year in July and electronics sales by 3.2 per cent. Department store sales rose 0.4 per cent, having fallen 12 per cent in June.

Sales at convenience stores rose 33.6 per cent and at supermarkets by three per cent.