Sales in the First Week of Metropolitan Area Level 4...Increase in Large Marts and Online Malls, Decrease in Department Stores and Hotel Buffets

On the 16th, citizens are waiting to get tested for COVID-19 at the screening clinic of Gangseo-gu Public Health Center in Seoul. The Korea Disease Control and Prevention Agency Central Disaster and Safety Countermeasures Headquarters announced that as of midnight, there were 1,476 new domestic COVID-19 cases and 60 imported cases, totaling 1,536 new cases. The cumulative number of confirmed cases stands at 175,046 (including 10,793 imported cases). Photo by Moon Honam munonam@

[Asia Economy Reporter Seoyoung Kwon] As social distancing measures in the Seoul metropolitan area were raised to Level 4 due to the spread of COVID-19, sales at large supermarkets and online shopping malls surged, while sales in department stores and hotel dining sectors declined, according to a recent investigation.

According to the distribution industry on the 18th, from the 12th to the 15th, when Level 4 social distancing was applied in the metropolitan area, sales of products such as vegetables and livestock at the large supermarket Emart increased by 4-7% compared to the previous week. Sales of toys and digital electronics also rose by 15% and 10.4%, respectively. At Lotte Mart, total sales during the same period increased by 8.9%, with mask and hand sanitizer sales rising by 19.9% and 54.1%, respectively.

Additionally, the combination of Level 4 social distancing and the heatwave led to an increase in online orders. At Lotte Mart’s online mall, sales from the 12th to the 15th rose by 9% compared to the previous week, with bottled water and ramen sales increasing by 18.7% and 7.1%, respectively. At the grocery shopping mall Market Kurly, sales of vegetables and beverages increased by 2% and 12%, respectively, during the same period. SSG.com also saw double-digit growth rates in sales of bottled water and ready-to-eat meals.

On the morning of the 15th, citizens are waiting to undergo screening tests for the novel coronavirus disease (COVID-19) at the temporary screening clinic in the public parking lot of Sinchon Train Station, Seodaemun-gu, Seoul.
[Photo by Yonhap News]

However, sales did not increase across all industry sectors. In contrast to large supermarkets, department store consumption showed signs of slight contraction. During the period from the 13th to the 15th, Lotte Department Store’s sales decreased by 5.9% compared to the same period the previous week. Detailed categories showed that sales of miscellaneous goods and women’s clothing dropped by 12.2%, and men’s sports products fell by 2.3%. Additionally, Shinsegae Department Store’s sales from the 12th to the 15th also declined by 8.1% compared to the previous week.

The hotel industry was also somewhat affected by the upgrade to Level 4 social distancing. Major hotels in Seoul reported a relative increase in meal reservation cancellations at buffets and restaurants. This phenomenon is understood to have arisen because, under Level 4 social distancing, no more than three people can share a table after 6 p.m. in various dining establishments.

However, there was no significant change in hotel room usage amid the ongoing COVID-19 situation. Although Level 4 regulations stipulate that only two-thirds of hotel rooms can be operated, the occupancy rate of large hotels, except on weekends, already does not exceed 60%. Furthermore, since up to four cohabiting family members can stay in one room, and due to demand from customers seeking so-called 'hokangseu' (hotel staycations) in independent rooms, the impact of Level 4 was less severe than feared.

Meanwhile, according to an 'Emergency Survey on Small Business Owners Amid the 4th Wave of COVID-19' conducted by the Korea Federation of Small and Medium Business from the 12th to the 15th with 300 small business owners, about 57.3% of respondents reported considering temporary closure or business shutdown due to difficulties caused by the heightened social distancing measures. Additionally, 67.3% of them predicted that their sales in July and August this year would decrease by more than 40% compared to their initial expectations.

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