South Korea sees retail sales grow in August
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South Korea’s retail sales grew 3.3 percent year over year in August on the back of higher sales in convenience stores super super market (SSM) operators, and online cosmetics and food retailers.
The Ministry of Trade, Industry, and Energy (MOTIE) surveyed 13 brick-and-mortar retailers and 12 online retailers and saw a 7.6 percent increase in convenience stores sales due to close proximity, small purchase shopping, and increased outdoor activities during the summer holiday season.
SSM operators reported a 3.2 percent increase due to higher demand for fresh/prepared food products and processed food products, however, flagging a sales decline in daily necessities.
Overall online sales during the month increased 8.1 percent, thanks to sales in cosmetics and food, which grew 14.1 percent and 13.0 percent, respectively. Online home/living sector grew 8.7 percent, while online services sold jumped 13.3 percent.
Overall brick-and-mortar hypermarket sales fell 8.4 percent as home/living and food sales dropped 12.8 percent and 7.9 percent, respectively, due to slow demand for gift sets, and fresh and processed food products.
Total department store sales 4.9 percent as food products, foreign designer labels and men’s clothing sold declined.
The data also noted a 2 percent decrease in fashion/clothing sales and 5.6 percent decline in sports sales as consumers cut purchases of non-essential items amid lower consumer sentiment.
Questions & Answers
Q.Which retail categories saw declines in August, despite the overall growth?
Which retail categories saw declines in August, despite the overall growth?
Sales at brick-and-mortar hypermarkets, department stores, and in fashion/clothing and sports categories all saw declines. This was partly due to reduced consumer sentiment and lower demand for non-essential items and gift sets.
Q.What factors contributed to the increase in convenience store sales during August?
What factors contributed to the increase in convenience store sales during August?
Convenience store sales grew due to their close proximity to customers, the trend of small purchase shopping, and an increase in outdoor activities coinciding with the summer holiday season.
Q.Which specific product categories drove the growth in online retail sales for August?
Which specific product categories drove the growth in online retail sales for August?
Online retail sales were boosted primarily by strong performance in cosmetics, which grew 14.1 percent, and food products, which saw a 13.0 percent increase. The home/living and services sectors also contributed to growth.