COVID-19 'Second Year Spring'... Crowds Pouring into Department Stores and Outlets

Spring Clothing Preparation and Increase in Outings Boost Department Store Sales by 38-57%
Recovery in Previously Sluggish Fashion Sector... Rise in Children's and Sports Consumption Too

[Asia Economy Reporter Yuri Kim] # Park, a man in his 30s, who works at an office, went to Shinsegae Department Store’s main branch last weekend after a long time but had a hard time with parking. Although he was prepared to wait for over an hour, once he entered the department store, each floor was bustling with people wearing masks. Park said, "Since I couldn’t even go on a proper outing last year, let alone travel abroad, and now that the weather has warmed up, I visited to refresh my mood and buy new clothes for my family. It seemed like everyone had similar intentions."

As the second spring of COVID-19 arrives, consumer sentiment is reviving. Consumption, which was mainly focused on luxury goods, is expanding to women’s fashion, men’s fashion, children’s items, and sports. The easing of social distancing measures right after the Lunar New Year holiday is also analyzed to have influenced this trend, as more people headed to department stores and outlets for outings.

◆Revived Consumer Sentiment

According to the distribution industry on the 24th, department store sales from February 13, the last day of the Lunar New Year holiday, to the weekend of the third week of February, the 21st, a total of 9 days, increased by 38-57% compared to the same period last year (February 15-23, also 9 days including the third week weekend).

This is the result of a combination of factors: the desire to prepare "new spring clothes" as the season moves toward spring and the weather warms up, the wish to go on outings, strengthened revenge consumption sentiment in the second year of COVID-19, changes in leisure activities such as outdoor sports and camping, and trends changed by COVID-19 such as staying home and telecommuting. The base effect from the sharp decline in consumption in February last year due to the full impact of COVID-19 is also reflected.

◆Recovery in Clothing Sales

A clear characteristic is the recovery in sales in the fashion sector. Shinsegae Department Store recorded an overall growth rate of 57.3% during this period, with women’s fashion (52.4%) and men’s fashion (41.6%) approaching the average and chasing the luxury growth rate (63.4%). Sports (67.7%) and children’s (65.9%) sectors outperformed both the overall average growth rate and luxury growth rate. Hyundai Department Store also showed balanced growth not only in luxury but also in fashion, children’s, and sports sectors, recording a total sales growth rate of 49.8%. Lotte Department Store showed a 38% sales growth during the same period. Men’s sports (54%) and home appliances and furniture (48%) raised the average, while overseas fashion (31%) and accessories and women’s clothing (29%) also showed sales improvement.

An industry insider said, "Due to staying home and telecommuting, the time spent at home has increased, leading to a rise in demand for interior-related products since last year. The overlapping demand for moving and newlyweds in spring has continued the sales growth of home appliances and furniture. The improvement in performance in the fashion sector, including clothing, which had been quiet for a while, is a noticeable change this spring."

◆Crowds at Suburban Outlets

This atmosphere was even more evident at outlets. During this period, the sales growth rate of six Lotte suburban outlets, including Lotte Premium Outlet Paju and Icheon branches, reached 64%. Home appliances and furniture (95%), overseas fashion (73%), and men’s sports (77%) made remarkable advances, and accessories and women’s clothing (45%) also performed well. Hyundai Outlet (excluding new stores) also saw a 59.7% increase in sales during this period.

An industry insider said, "Although the base effect from last year still influences the figures, the signs of sales recovery in women’s and men’s fashion, which account for a large portion of department store operations, are positive. Consumer sentiment, which was suppressed due to COVID-19, is reviving with spring." However, they added, "The atmosphere could change rapidly depending on the trend of confirmed cases, so the situation needs to be monitored for the time being."

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