In Markets

Retail sales in Korea increased by 2 percent in May

Korea retail

Retail sales in South Korea increased 2 percent in May from a year earlier as people purchased more sanitary items and food through online platforms in the face of the new coronavirus pandemic, data showed.

SEE ALSO : Korean retail industry sees sales boost from nationwide promotional event

The combined sales of 26 major offline and online retailers reached US$9.65 billion in May, up from US$9.5 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy.

The increase was attributable to a rise in sales at online platforms, which enjoyed a 13.5 percent hike in their revenue over the period.

Sales of food from online shops increased nearly 39 percent, with those of daily items and furniture also rising 22.7 percent.

Shipments of electronic goods from online shops advanced 20 percent as well, in line with a new rebate scheme on energy-efficient products.

Due to the global virus pandemic, sales of tourism services and packages, however, dipped 19 percent over the period.

Local consumers continued to shun offline stores last month in sync with the country’s social-distancing guidelines and fears of catching the virus.

Thirteen offline store operators saw their sales dip 6.1 percent in May from a year earlier, with convenience stores being sole winners.

Sales from supermarkets and department stores decreased 9.7 percent and 7.4 percent, respectively, over the period as more people avoided crowded places while purchasing daily necessities online.

Convenience stores, on the other hand, saw their sales edge up 0.8 percent on the rising demand for sanitary items.

South Korea has reported more than 12,700 COVID-19 cases, with lingering cluster infections from the Seoul metropolitan area sparking concerns over yet another wave of the major pandemic in the country.

In 2019, retail sales in South Korea rose 4.8 percent on-year.

SEE ALSO : Facebook Shops increased competition in Korean e-commerce market

Revenue at online shopping malls advanced 14.2 percent, while that of offline stores shed 0.9 percent over the period.

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox:

 

Stay ahead
Subscribe for free!
Register now
Stay ahead