SEOUL, October 21 (AJP) - South Korea's retail outlook diverged sharply heading into the fourth quarter, with department stores and large supermarkets remaining optimistic while convenience stores and neighborhood supermarkets turned markedly weaker, a business survey showed Wednesday.
The overall retail business survey index, or RBSI, fell to 88 from 92 in the third quarter, according to the Korea Chamber of Commerce and Industry. A reading above 100 means more companies expect business conditions to improve than deteriorate.
Department stores posted the strongest reading at 130, followed by large supermarkets at 111. Convenience stores fell to 79 from 127, while supermarkets dropped to 73 from 85.
Online shopping was the only sector to improve from the previous quarter, rising to 82 from 74.
The survey suggests consumers are becoming more selective rather than simply cutting spending across the board. Among retailers expecting conditions to worsen, 70 percent cited more cautious household spending as the main reason.
Some 78.4 percent of respondents said demand for value-for-money products had either remained steady or increased, while 83.6 percent said the same for purchases focused on smaller quantities and specific needs.
The divide was especially visible between department stores and convenience stores. Department stores continued to benefit from foreign tourist spending and year-end demand, while convenience stores entered a seasonal slowdown as colder weather reduced demand for beverages and frozen products.
The chamber surveyed 500 retailers across Seoul and six major metropolitan cities.
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