Retailers' Sales in January This Year Increased by 13.9% YoY... Seol Holiday Base Effect

[Asia Economy Sejong=Reporter Dongwoo Lee] In January this year, sales of major distribution companies such as large supermarkets, department stores, and convenience stores increased by 13.9% compared to the same month last year. During the same period, offline sales grew by 18.4%, and online sales by 9.1%, respectively.

According to the 'January 2022 Major Distribution Companies Sales Trends' announced by the Ministry of Trade, Industry and Energy on the 27th, this sales growth trend was attributed to the base effect from last year, increased sales due to the Lunar New Year holiday, and strong sales from discount events. During this period, online sales continued to grow due to the normalization of non-face-to-face consumption, but the growth rate slowed compared to the previous year.

The sales growth rates by product category were highest for overseas famous brands (46.5%), fashion and accessories (22.1%), and food (17.2%). Offline, sales of children’s and sports goods (40.9%) and fashion and accessories (26.9%) increased due to higher demand for Lunar New Year gifts, while sales in the home appliances and culture sector (-2.7%) decreased. Online, sales of services and others (23.3%) continued to increase due to strong sales of performance tickets, food delivery, and e-coupons, whereas sales of home appliances and culture (-4.7%) and children’s and sports goods (-0.6%) declined.

By business type, the offline sales share of large supermarkets, department stores, convenience stores, and SSMs increased from 51.5% to 53.5%, while the online sales share decreased from 48.5% to 46.5%. Among offline sectors, sales shares of large supermarkets (-0.1%p), convenience stores (-0.6%p), and SSMs (-0.5%p) all decreased except for department stores, which increased by 3.1%p.

SSM sales decreased for the sixth consecutive month compared to the same period last year, down by 1.2%. However, overall sales increased by 18.4% due to strong sales in large supermarkets (13.8%), department stores (37.2%), and convenience stores (9.3%). In large supermarkets, sales of food, which has a high sales share, increased by 16.9% due to sales of ingredients and gift sets related to the Lunar New Year, and total sales rose 13.8% thanks to strong sales in home and living (13.5%), clothing (13.1%), and accessories (10.6%). Department stores saw a total increase of 37.2% driven by strong sales of food (60.0%) related to Lunar New Year gift sets, and convenience stores increased sales by 9.3% as the number of stores grew by about 2,300 compared to the same period last year.

Online sales of distribution companies increased by 9.1% compared to the same month last year, continuing growth, but the growth rate slowed due to the impact of the parcel delivery strike and a decline in sales in the home appliances and electronics sector (-4.2%). Sales of services and others (23.3%) continued to perform well due to strong sales of performance tickets, food delivery, and e-coupons, and sales of food (18.0%) increased due to the expansion of non-face-to-face purchases of fresh food and beverages. On the other hand, sales of home appliances and electronics (-4.2%), which have a large sales share, declined due to sluggish sales of large appliances such as TVs, refrigerators, washing machines, and laptops and computers.

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