Retail sales among major companies in South Korea increased by more than 7% in the first half of 2026. The surge in department store sales was driven by improved consumer sentiment and an increase in foreign tourists, while large supermarkets and super supermarkets (SSMs) continued to struggle with declining food sales.
The Ministry of Trade, Industry and Energy reported on July 29 that the total sales of 26 major retail companies rose by 7.3% compared to the same period last year. Offline sales increased by 6.2%, while online sales grew by 8.1%.
In the first half of the year, department stores experienced significant growth due to improved consumer sentiment and increased sales from foreign tourists. Convenience stores also showed signs of recovery, and online retail continued its stable growth. However, large supermarkets and SSMs faced ongoing challenges.
By sector, department store sales led the overall growth with a 20.1% increase. This was attributed to the transformation into experiential spaces and the rise in foreign tourists. Convenience stores grew by 3.7%, benefiting from a low base effect from the previous year's decline and early summer heat. Online retail sales increased by 8.1%, although this was a slowdown compared to last year's 14.4% growth due to the base effect.
In contrast, large supermarkets saw a 7.3% drop in sales in the first half, marking nine consecutive quarters of negative growth since the second quarter of 2024. SSMs also experienced a 6.6% decline, continuing a downward trend for four consecutive quarters since the third quarter of last year. This decline is largely due to ongoing poor performance in their key food categories.
The retail trends in the first half of the year indicate that the recovery in consumer spending is uneven across sectors. While department stores benefited from foreign tourists and a rebound in high-end spending, large supermarkets and SSMs are facing structural pressures as grocery shopping shifts online. The movement of food purchases to online platforms is particularly undermining the core business of large supermarkets.
In June alone, total sales increased by 9.5% compared to the same month last year. Offline sales rose by 6.4%, while online sales grew by 11.7%. Department stores saw a 22.2% increase, and convenience stores grew by 5.1%, whereas large supermarkets and SSMs experienced declines of 10.5% and 10.8%, respectively.
* This article has been translated by AI.
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