July Retail Sales Increase by 4.4%... Online Share Rises

Online, Double-Digit Growth for 12 Consecutive Months Since August Last Year

[Asia Economy Reporter Moon Chaeseok] Last month, major retailers' sales increased by 4.4% compared to the previous year. Due to the impact of the novel coronavirus disease (COVID-19), online retailers recorded double-digit sales growth, while offline sales declined, causing the online share of total sales to grow to nearly half.

Source: Ministry of Trade, Industry and Energy

According to the sales trends of major retailers announced by the Ministry of Trade, Industry and Energy on the 30th, online sales increased by 13.4% compared to the same month last year, while offline sales decreased by 2.1%. The data was compiled from 13 offline retailers and 13 online retailers.

The online sales share expanded to 45.7% of the total, up from 42.1% in June.

Source: Ministry of Trade, Industry and Energy

Offline sales continued to decline since February, when COVID-19 began spreading, due to avoidance of multi-use facilities and prolonged rainy seasons.

The decline rate eased compared to -7.5% in February and -17.6% in March. It was -5.5% in April, -6.1% in May, -3% in June, and -2.1% last month.

In particular, sales at semi-large stores (SSM, -11.9%), large marts (-5.5%), and department stores (-2.1%) decreased, except for convenience stores (3.7%), as store visits declined.

Specifically, SSM saw a 15.5% drop in visitors due to the rainy season and other factors. Consequently, sales of seasonal fruits such as peaches, watermelons, and grapes decreased, leading to an 11.9% decline in agricultural, fishery, and livestock products sales.

Department stores saw increased sales in overseas famous brands (32.5%) and household goods (11.6%), but fashion sales, including women's casual wear (-27.2%), declined due to reduced outings and travel.

Large marts also experienced sales decreases in clothing (-21.2%), sports goods (-24.4%), and miscellaneous goods (-29.1%).

Source: Ministry of Trade, Industry and Energy

On the other hand, online sales increased by 13.4% year-on-year, following the trend of preference for non-face-to-face transactions amid the spread of COVID-19. This marked the 12th consecutive month of double-digit growth since August last year.

Growth rates were 8.7% in July last year, 15.2% in August, 17.8% in September, 12.5% in October, 14.8% in November, 10.5% in December, and 10.2% in January this year.

The growth rate increased further from February onward: 34.3% in February, 16.9% in March, 16.9% in April, 13.5% in May, 15.9% in June, and 13.4% last month, with many months exceeding 15%.

Food sales increased by 46% due to promotional events for agricultural and fishery products. Sales of daily necessities and furniture also rose by 26.3% due to strong demand for items needed for indoor activities.

However, service and other sales decreased by 16.3% as consumption of travel-related products continued to decline due to social distancing measures.

Sales growth rate by online distribution item. (Source: Ministry of Trade, Industry and Energy)

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