South Korean retail sales record double-digit growth
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Department store sales jumped 40 percent in February against a year-ago period in the biggest year-on-year gain since the data became available from 2005 to suggest a rebound in private consumption in South Korea.
According to the Ministry of Strategy and Finance’s monthly economic review, department store sales jumped 39.5 percent on year in February, a record-high growth rate since monthly records became published.
Sales at discount stores also gained 24.2 percent, the largest increase since the 34.8 percent gain in Feb 2015.
Domestic credit card spending last month rose 8.6 percent from a year ago, rebounding for the first time in three months.
The boost in consumer spending was spurred by the Lunar New Year’s holiday in early February in a pent-up demand after protracted social distancing measures, the finance ministry noted.
The figure also goes against poor numbers a year ago when the country was swept up in the first wave of Covid-19 outbreak.
In Feb last year, the department store sales fell 30.6 percent. Discount store revenue declined 19.6 percent, the biggest drop since Jan 2015 when the figure was down by 24 percent.
An official from the finance ministry said that the low base effect from last year may have made the February figures look better than they really are.
Questions & Answers
Q.What is the reason given for the recent increase in South Korean retail sales figures?
What is the reason given for the recent increase in South Korean retail sales figures?
The finance ministry noted that the boost in consumer spending was spurred by the Lunar New Year’s holiday in early February. This contributed to pent-up demand after protracted social distancing measures were in place.
Q.How did department store sales perform in February compared to the previous year?
How did department store sales perform in February compared to the previous year?
Department store sales jumped 39.5 percent on year in February, a record-high growth rate since monthly records became published. This is a significant rebound compared to a 30.6 percent fall in February last year.
Q.What was the performance of discount stores in South Korea during February?
What was the performance of discount stores in South Korea during February?
Sales at discount stores gained 24.2 percent in February, which is the largest increase since a 34.8 percent gain in February 2015. This follows a 19.6 percent decline in discount store revenue last year.
Q.Why might the February retail sales figures appear more positive than the reality?
Why might the February retail sales figures appear more positive than the reality?
An official from the finance ministry suggested that the low base effect from last year may have made the February figures look better. This is because sales were very poor in February last year due to the initial Covid-19 outbreak.
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