South Korea’s major retail companies experienced a significant 5.6 percent year-on-year revenue increase in March. This robust growth in consumer spending was primarily driven by a surge in inbound tourism and the annual back-to-school shopping season, according to government data released on Wednesday.
Within the offline retail sector, overall sales saw a 1.9 percent year-on-year rise. Leading this expansion were department stores, which recorded an impressive 14.7 percent surge in revenue, alongside convenience stores, benefiting from a 2.7 percent sales increase. These figures were compiled by the Ministry of Trade, Industry and Energy (MOTIE).
The ministry specifically noted that department stores thrived, seeing increased revenue across various categories including fashion, sports items, and children’s goods. This success was significantly bolstered by a record-breaking 2.06 million foreign tourists visiting South Korea in March, coupled with increased shopping demand spurred by the new school year.
Conversely, offline supermarkets experienced a notable 15.2 percent year-on-year decline in revenue. This downturn is largely attributed to the persistent and robust expansion of the e-commerce sector.
In contrast, major online retail platforms demonstrated strong performance, with their collective revenue climbing 8.1 percent year-on-year. This growth was primarily fueled by increased sales in key categories such as cosmetics, groceries, household items, and home appliances.
