"Closed for Strike, Can't Endure Anymore" Door Opened... Consumers Ignore Even 50% Drastic Sale

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Innisfree store located on Gangnam-daero visited on the afternoon of the 9th. Although a discount event is underway, it appears quiet with no customers.

[Asia Economy Reporters Seon-ae Lee, Yoo-jin Jo, Chae-sin Hye, Seung-jin Lee] The consumption cliff caused by the novel coronavirus disease (COVID-19) is rendering the retail industry's drastic discount events ineffective. The message that 'there is no need to consume immediately' is pushing the retail industry to the brink. Despite the government's strict social distancing orders, self-employed business owners, unable to endure 'zero sales,' have resumed operations but are distressed as they fail to earn even a day's wage.

Descente store in Gangnam.

◆Even with 50% drastic discounts, only employees are in the stores= On the afternoon of the 9th, we visited the Innisfree store located on Gangnam-daero. Outside the usually bustling store, only a few pedestrians hurriedly passed by amid social distancing measures. Despite signs announcing spring new product launches and discount events such as the 'Jeju King Cherry Blossom Line,' the store was completely empty of customers. Whenever a rare customer entered, employee Kang Soo-yeon explained, "We are running a My Shop event offering a 5,000 won discount on purchases over 10,000 won," but no one showed interest.

The situation was similar at the nearby Nature Collection store. With no customers visiting, only two employees wearing masks were guarding the store. Nature Collection was conducting drastic discount events on items with increased demand due to COVID-19 to attract customers.

The store view of Beyond Emart Mapo Gongdeok branch visited on the afternoon of the 9th.

Employee Yang Bo-ra lamented, "This is the first time our store has held a 50% discount event, but customers are not even willing to enter the store." Jeon Ye-rang, an employee at the clothing company Descente across the street, said, "The number of people passing through Gangnam Station street has not increased yet," adding, "New products have been continuously released in February and March, but customers visiting the store remain scarce."

Department stores that started their spring regular sales on the 3rd are experiencing similar situations. Lotte Department Store announced that sales increased by 17.9% compared to the previous week during the first three days of the sale from the 3rd to the 5th. However, compared to the first three days of last year's spring regular sale, sales decreased by 14.2%, and compared to the same period last year, sales dropped by 19.5%. Shinsegae Department Store also saw a 7.1% increase in sales compared to the previous week from the 3rd to the 5th, but sales were down 18.2% compared to the previous year. Luxury goods were the only category with increased sales. A Lotte Department Store official said, "Considering that department store sales dropped by up to 40% after COVID-19, the decline in sales has lessened, but negative growth compared to the previous year continues," adding, "Consumer sentiment remains at a cliff."

Lotte Department Store Main Branch.

◆Self-employed business owners say "It's no longer possible to comply with distancing"= The situation for self-employed business owners is even more severe. At a duck meat restaurant in Suwon visited in the evening, a sign read, "We are reopening from today." The restaurant had closed for two weeks to comply with social distancing. The owner, Kwon Sun-young (pseudonym, 51), said, "Due to concerns about COVID-19 infection, customer visits decreased, and weekend sales dropped by about 80%. We closed to comply with social distancing, but it became difficult not to operate any longer," adding, "If we continue to close, it could damage the store's image, and we could not endure having zero income."

Kim Mi-ja (pseudonym, 48), who runs a karaoke room in Guro-gu, voluntarily closed for two weeks but reopened on the 6th. She said, "I closed to support the government's intentions, but I had no choice but to open due to livelihood concerns, and I only earned 50,000 won," lowering her head.

The expressions of consumers observing this are as complicated as those of business owners. As the government emphasizes strict social distancing daily, it is difficult to easily visit restaurants or retail stores. Choi Yong-hoon (35), an office worker met in Euljiro, said, "I was so frustrated and tired of eating home-cooked meals continuously that I recently had a private gathering and visited my regular restaurant," adding, "If we feel this frustrated and tired, I can only imagine how the business owners feel."

Lee Sun-hee (32), a housewife browsing discounted items at a clothing store in Myeongdong, said, "I think citizens are now exhausted to the point of fatigue," adding, "If people wear masks and are careful, I think having more events like this would help stimulate consumption."

This content was produced with the assistance of AI translation services.