The "Corona Nightmare" Duty-Free Shops Also Begin to Stretch

April Sales Increase by 51%, Highest Growth Rate in 3 Years

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] In April, duty-free shop sales significantly increased for the first time in three years, indicating a rapid recovery from the impact of COVID-19.

According to the National Statistical Portal (KOSIS) on the 8th, duty-free shop sales in April (based on constant index) rose by 51.6% compared to the same month last year. This marked the highest growth rate in 2 years and 11 months since May 2018 (54.6%). By product category, sales of shoes and bags at duty-free shops increased by 108%, cosmetics sales rose by 37.9%, and other product sales surged by 173% compared to the same month last year.

An official from Statistics Korea explained, "The high growth rate in April was largely influenced by the low base effect due to poor business conditions last year. It cannot yet be said that duty-free shop sales have fully recovered to pre-COVID levels," adding, "This indicator can be interpreted as a nuance or signal of consumption recovery."

Duty-free shop revenue also reached its highest level since the COVID-19 outbreak. According to the Korea Duty Free Association, domestic duty-free shop sales in April amounted to approximately 1.5574 trillion won, the highest since January last year when sales were 2.0247 trillion won. However, the overall scale of duty-free sales has still not recovered to pre-COVID-19 levels. The seasonally adjusted duty-free sales index for April was 217.7, significantly below the index of 314.3 recorded in December 2019, just before the pandemic.

Sales of durable goods such as passenger cars and home appliances, as well as semi-durable goods like clothing, shoes, and bags, are also increasing. The seasonally adjusted semi-durable goods sales index in April recorded 111.3, surpassing the level of December 2019 before COVID-19. The non-durable goods sales index also recovered to a similar level of 115 compared to December 2019. The retail sales index (seasonally adjusted), which reflects consumption trends, reached 120.5, the highest since statistics began in 1995. Service industry production also hit a record high since statistics started in January 2001. In particular, the wholesale and retail production index in April increased by 9.3% year-on-year, marking the largest increase in 13 years and 6 months since October 2007 (10.6%).

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