Retail sales in South Korea increased by 6.4% in July, driven by a heat wave and the vacation season. However, large supermarkets and superstores continued to face challenges.
According to the Ministry of Trade, Industry and Energy, total sales among major retailers rose 6.4% compared to the same month last year. Offline sales grew by 3.2%, while online sales surged by 8.5%.
The ministry attributed the sales increase to higher demand for delivery services and travel-related purchases during the hot weather. Notably, the strong performance of international brands and the expansion of online grocery shopping contributed to the overall sales growth.
Consumer sentiment is also on the rise. The Bank of Korea's Consumer Sentiment Index (CCSI) for July stood at 106.8, up 0.2 points from the previous month, marking three consecutive months above the baseline of 100 since May.
Performance varied across different retail formats. Department store sales jumped 17.9%, fueled by recovering consumer sentiment and summer vacation demand. Sales of international brands soared by 28.9%, and the electronics and cultural sectors also saw a 10.1% increase across all product categories.
Convenience store sales rose by 1.1%. Although the number of visitors decreased by 0.5%, an increase in average spending per customer by 1.6% boosted sales. The number of convenience stores fell by 1.0% to 53,458, while sales per store increased by 2.1%. Both department stores and convenience stores have seen sales growth for 13 consecutive months since July of last year.
In contrast, large supermarket sales plummeted by 11.2%, marking five consecutive months of decline. A significant factor was an 18.0% drop in the number of transactions. Additionally, Homeplus, which is undergoing corporate restructuring, temporarily closed some stores from July 13 to August 12, affecting its sales figures in the July survey. Sales at superstores also fell by 2.9%, continuing an eight-month downward trend, primarily due to a 2.5% decrease in food sales.
Online sales continued to grow, driven by increased demand for delivery and travel-related products, as well as expanded sales of food and electronics. Sales in the services and other categories rose by 17.5%, while electronics and food sales increased by 11.4% and 10.4%, respectively.
Online sales now account for 60.8% of total retail sales, up from 53.0% in 2022, 53.8% in 2023, 56.4% in 2024, and 59.0% last year.
* This article has been translated by AI.
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