Last Month's Department Store Sales Surge 78%... 'Retaliatory Consumption' Begins in Earnest

[Sejong=Asia Economy Reporter Kwon Haeyoung] Last month, sales at offline retail stores such as department stores increased significantly. While this is partly due to the base effect from the sharp decline in offline retail sales caused by COVID-19 a year ago, it is also analyzed that revenge consumption, where suppressed spending is now being unleashed, has fully begun.

According to the 'March 2021 Major Retailers Sales Trends' announced by the Ministry of Trade, Industry and Energy on the 27th, total retail sales both online and offline last month increased by 18.5% compared to the same month last year.

In particular, offline retail sales increased by 21.7% compared to the previous year. By retailer, department store sales rose the most at 77.6%. This is attributed to a surge in sales of fashion-related product categories such as children's and sportswear (109.8%) and overseas famous brands (89.0%) within department stores. Although sales at corporate supermarkets (SSM, -18.6%) declined, sales at convenience stores (10.7%) and large discount stores (2.1%) increased, supporting overall offline retail sales.

Online sales also increased by 15.2% compared to the previous year. In particular, sales of service and other product categories such as home appliance and daily goods rental services, food delivery, and coupon sales grew the most at 73.5%. Taking advantage of the spring sales, sales of fashion and accessories (21.2%), food (11.5%), and home appliances and culture (9.0%) also increased. On the other hand, sales of children's and sports goods (-4.7%) and daily necessities and furniture (-0.3%) showed a slight decrease compared to the same month last year.

An official from the Ministry of Trade, Industry and Energy said, "Along with the base effect caused by COVID-19, offline sales increased significantly as latent consumption was expressed during the spring sales season. Online sales also continue to grow steadily due to increasing orders for services such as home appliance and daily goods rental and food delivery through online channels."

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