First Weekend of Disaster Relief Fund Usage: Convenience Stores Smile, Marts and Department Stores Cry

Convenience Stores See Sales Increase from Daily Essentials to High-End Cosmetics
Hanaro Mart's Meat Consumption Surges 2-3 Times
Supermarkets and Department Stores Struggle... Fruit and Meat Sales Decline
Relative Neglect... Only Luxury Goods Rise Alone

[Asia Economy Reporters Hye-seon Lim, Min-young Cha, Seung-jin Lee] Polarization in weekend consumption appeared for the first time after the emergency disaster relief funds to overcome the novel coronavirus infection (COVID-19) were distributed. Convenience stores, supermarkets, and Hanaro Mart, where the relief funds could be used, were crowded with people, but large discount stores appeared quiet.

According to the distribution industry on the 18th, an analysis of major item sales at GS Retail's convenience store GS25 on the 16th and 17th showed a significant increase in sales centered on daily necessities and grocery-related products. Major item sales at GS25 surged by more than 50% compared to the previous week. Sales of hair and body cleansing products and sports goods (golf, camping) increased by 265.6% and 111.7%, respectively. Ice beverages (77.7%), domestic fruits (57.4%), domestic pork (50.4%), imported beef (50.1%), pet supplies (63.6%), mobile phone accessories (62.9%), and toys (57.8%) also saw soaring sales.

At 7-Eleven, the rise of high-priced products was particularly notable. During the period, sales of razors and men's cosmetics increased by 45.2% and 48.1%, respectively. Ice cream sales increased by 11.3% overall, with premium ice cream (such as Naturru and H?agen-Dazs) sales rising by 21.6%, while regular low-priced ice cream increased by 9.9%. Alcohol sales also rose, with high-end products like wine and whiskey increasing by 17.2% and 12.8%, respectively. Beer rose by 8.3%, and soju and Makgeolli increased by 4.1%. A convenience store official analyzed, "Although daily demand is not very large, consumption surged because the psychological economic burden was reduced due to the use of disaster relief funds." At CU, sales of ice (65.9%), ice drinks (40.1%), ice cream (38.0%), functional health drinks (27.5%), wine (233%), and fruits and vegetables (14.2%) increased.

The only mart where relief funds could be used, Nonghyup Hanaro Mart, also posted strong results. Sales at Hanaro Mart Yangjae branch increased by 36% compared to the previous week. Hanaro Mart explained, "Consumption of meat such as beef and pork increased 2 to 3 times," adding, "Consumption of seasonal summer fruits and rice also increased." In fact, sales of Korean beef sirloin and pork belly surged by 175% and 200%, respectively.

On the other hand, large discount stores showed sluggish performance. From the 15th to the 17th, Lotte Mart's sales decreased by 7.3% compared to the same period last year. Compared to the previous week, sales also dropped by 3.6%. Sales of all products, including fruits (-6.8%), livestock products (-4.2%), and processed foods (-7.2%), were sluggish. E-Mart's sales also declined. It seems there was little incentive for consumers to visit large discount stores where disaster relief funds could not be used. A mart official said, "Since it is the early stage, we are monitoring the situation, but if it prolongs, we are worried that the sales of tenants in the mart will decrease."

The situation was similar at department stores. During the same period, Lotte Department Store's overall sales decreased by 15% compared to the same period last year. By category, miscellaneous goods and women's fashion groups decreased by 30% and 25%, respectively. Food sales, which had previously recorded positive growth compared to the previous year, also stagnated (-26%). Shinsegae Department Store's overall sales also dropped by 3.2%. Fresh food (-7.8%), women's fashion (-19.5%), and men's fashion (-17.7%) all declined sharply. Luxury goods sales, however, reduced the decline in department store performance. Luxury goods sales increased by as much as 31.7%.

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