Food
South Korea’s non-store retailers including online shopping and delivery operators raised a record 46.2 trillion won ($39.1 billion) in sales in the first six months of the year as consumers relied much on non-face-to-face businesses amid coronavirus fears.
According to data from Korea Small Business Institute and Statistics Korea on Monday, non-store retail sales jumped 19.4 percent year over year to an all-time high of 46.2 trillion won in the January-June period. The amount was 13 percent more than the second half of last year and more than doubling 22.6 trillion won in the first half of 2015.
It was the first time for the bi-annual amount of non-store sales to jump more than 7 trillion won on year from the previous six-month period. The previous record increase was 4.8 trillion won in the first half of last year.
The rapid increase was largely attributed to the outbreak of COVID-19 as non-store retailers gained huge popularity for its convenience of being able to allow consumers to purchase goods without having to visit offline stores amid social-distancing measures to contain coronavirus. Many companies also advised employees to work from home.
According to Woowa Brothers, the operator of the country’s largest food delivery app Baedal Minjok, the number of mobile orders jumped 176 percent on year in the January-June period. The surge has further accelerated during the coronavirus outbreak.
Amid growing demand for non-store shopping due to the virus scare, retailers have turned aggressive in selling products via online and home shopping channels.
As more people opt for non-store shopping, sales at department stores fell 13.4 percent on-year to 12.9 trillion won in the first six months of the year and those of specialty retailers 10.3 percent to 61.1 trillion won. Sales of duty-free stores especially plunged 37.1 percent during the cited period as board-crossing traveling was virtually impossible.
Sales at large discount stores, supermarkets, and convenience stores increased in the first half of the year from a year ago but growth was smaller than those of non-store retailers.
Large discount stores raised 16.2 trillion won in sales in the January-June period, up 1.1 percent from a year ago. Sales at convenience stores increased 2.8 percent to 12.7 trillion won and supermarkets 6.8 percent to 23.2 trillion won.
