South Korean retailers have significantly capitalized on the early May holiday period, reporting soaring sales driven by a substantial influx of international tourists visiting the country. This tourism boom has energized various sectors across the nation’s vibrant retail landscape.
Leading the surge, Shinsegae Department Store reported exceptional growth. Its flagship Myeong-dong main store in central Seoul experienced a staggering 359 percent jump in sales from May 1 to 5 compared to the previous year. Similarly, the Centum City Branch in Busan saw sales climb by an impressive 298 percent. Across all Shinsegae locations, total sales during this period increased by approximately 35 percent year-over-year, underscoring the broad impact of foreign tourist spending.
Lotte Department Store also reported robust performance, with transactions from foreign customers doubling during the crucial May holiday period compared to the previous year. Specifically, Lotte’s prominent Myeong-dong store recorded a 90 percent increase in sales, while its Busan branch saw an remarkable 200 percent rise. Overall, Lotte Department Store achieved an approximate 30 percent year-on-year growth in sales.
Hyundai Department Store also contributed to the strong retail sector performance, registering a total sales growth rate of 36 percent during the spring holiday season. Notably, sales to international visitors at The Hyundai Seoul, a popular attraction for tourists, surged by 155 percent, highlighting its appeal as a premier shopping destination.
South Korea’s duty-free shop operators similarly experienced a significant boost from the influx of foreign visitors during the holiday season. Lotte Duty Free announced a 43 percent year-over-year growth, while Hyundai Duty Free recorded an impressive 77.1 percent increase in sales to international travelers. Shinsegae Duty Free’s Myeong-dong store reported an astounding seventeen-fold surge in sales, underscoring the strong demand for tax-free shopping among tourists.
Beyond traditional large retailers, the positive impact of the May holidays extended to up-and-coming brands and convenience stores, demonstrating a widespread economic benefit across the diverse South Korean retail landscape.
Beauty retail leader CJ Olive Young reported a substantial 44 percent rise in sales to foreign nationals compared to the same period last year. At its CJ Olive Young N Seongsu location in eastern Seoul, over 80 percent of total sales were attributed to international customers. This increased spending by foreigners wasn’t limited to the capital; regional Olive Young stores in Gwangju, Daejeon, and Cheongju (North Chungcheong Province) also saw impressive week-over-week sales increases of 53 percent, 69 percent, and 43 percent, respectively, showcasing the broad appeal of Korean beauty products.
Fashion retailer Musinsa also benefited significantly, with 12 of its global customized stores located in major tourist districts nationwide recording a 30 percent week-over-week sales boost. Furthermore, its two stores in Seoul’s trendy Seongsu-dong district collectively achieved a 41 percent increase in sales, reflecting the rising popularity of Korean fashion among visitors.
Even convenience stores witnessed remarkable growth. 7-Eleven reported an extraordinary 150 percent year-over-year growth in transactions processed through popular Chinese online payment platforms like Alipay and leading card UnionPay during the May holiday period. Similarly, CU saw a healthy 68 percent increase in sales facilitated by overseas payment methods, indicating strong spending by international tourists even on everyday items.
This widespread retail success aligns with data from the state-run Korea Tourism Organization, which reported that approximately 220,000 Japanese and Chinese travelers visited South Korea between April 29 and May 6. This represents a significant 40 percent increase from the same period last year, largely due to major spring holiday periods in Korea’s neighboring countries, underscoring the critical role of inbound tourism in boosting the national economy.
hwkan
