Offline Retail Sales Decline for Three Consecutive Months Due to Operating Hour Restrictions and Cold Wave Impact

[Sejong=Asia Economy Reporter Kwon Haeyoung] Due to restrictions on store operating hours and the impact of cold waves, offline sales of distribution companies have shown a decline for three consecutive months.

According to the 'January Major Distribution Companies Sales Trends' announced by the Ministry of Trade, Industry and Energy on the 25th, online sales increased by 22.6% compared to the same period last year, while offline sales decreased by 5.8%. As a result, total sales were recorded to have increased by 6.1%.

The proportion of total sales accounted for by offline sales dropped from 58% to 51.5% year-on-year, while online sales expanded from 42.0% to 48.5%. Offline sales declined due to reduced demand caused by restrictions on external activities from store operating hour limits, cold waves, and the delayed Lunar New Year holiday period compared to the previous year. This marks a three-month consecutive decline starting from November last year (-2.4%), December (-4.4%), and January this year (-5.8%).

By business type, sales decreased across the board except for convenience stores (2.4%), with large marts (-11.7%), department stores (-6.3%), and SSM (Super Supermarket Model, -3.3%) all experiencing declines.

Online distribution companies showed steady growth following last year, supported by the expansion of non-face-to-face consumption and pre-orders for Lunar New Year gifts through online channels. With more time spent at home due to remote work and expanded online classes, sales of home appliances and electronics (43.3%) and daily necessities and furniture (22.1%) rose significantly. Additionally, due to increased demand for Lunar New Year gift sets, sales of agricultural, livestock, and processed foods surged, making the food category the largest share (25.5%) of online sales.

However, sales of fashion and clothing (-0.1%) and services and others (-14.2%) declined due to reduced external activities caused by COVID-19.

Looking at total sales by product category, sales increased in home appliances and culture (37.5%), overseas famous brands (21.9%), and daily necessities and household goods (9.8%). Conversely, fashion and accessories (-13.5%) and services and others (-7.3%) saw decreases.

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