Online Retailers 'Smile' Due to Corona... Offline Stores 'Frown'

Online Food Purchases Up 56%... Store Visits Decrease, Department Store Sales Down 15%

[Asia Economy Reporter Moon Chaeseok] Due to the spread of the novel coronavirus infection (COVID-19), online retail sales increased last month while offline sales decreased.

According to the Ministry of Trade, Industry and Energy on the 28th, sales of major retailers last month increased by 3.9% compared to the same month last year.

Sales of 13 online retailers including eBay Korea (Gmarket, Auction), 11st, and Interpark increased by 16.9%.

Sales of 13 offline retailers including three department stores, three large discount stores, three convenience stores, and four SSMs (Super Supermarkets) decreased by 5.5%.

Online retailer sales maintained double-digit growth last month following 34.3% in February and 16.9% in March.

Offline retailer sales increased by 4.1% in January but reversed to -7.5% in February when COVID-19 began spreading. It dropped further to -17.6% in March and narrowed the decline to -5.5% last month.

Online retailers saw sales increase as non-face-to-face consumption expanded. Food (56.4%) and daily necessities & furniture (23.9%) sales surged.

However, due to social distancing and a continued atmosphere of refraining from going out and traveling, sales of outing and travel-related product categories such as fashion & clothing (-8.8%) and services & others (-21.3%) continued to decline.

Looking at offline retailer performance by type, sales decreased across the board: department stores (-14.8%), SSM (quasi-large supermarkets, -2.6%), large discount stores (-1%), and convenience stores (-1.9%).

In particular, department stores were hit hard in the fashion sector, including children’s & sportswear (-19.2%) and women's suits (-34.0%), as consumers refrained from outdoor activities.

On the bright side, home goods sales increased by 9.6% thanks to the 'Top Efficiency Home Appliance Purchase Cost Rebate Program.'

Sales per store increased by 1.4% for SSMs but decreased for department stores (-11.9%), convenience stores (-7.4%), and large discount stores (-0.3%).

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