"Avoiding the Heatwave, Shoppers Choose Malls Over Outdoor Cafes"…The Two Faces of the Heatwave, Retailers Cry and Smile

Major Department Store Sales Up 30%
Cool Shopping and Dining Experience
Increased Crowds at Large Supermarkets
Surge in Air Conditioner and Cooling Appliance Sales

Traditional Markets Quiet Amid Scorching Heat
Meat Restaurants Cool Grill Heat
'Blast Air Conditioners' Raise Electricity Bills and Burdens

Jung Da-hyun (37, pseudonym), who lives in Eunpyeong-gu, Seoul, canceled her plan to visit a dog-friendly cafe in Goyang-si, Gyeonggi Province last weekend and turned her steps toward a nearby shopping mall instead. The scorching heat made it impossible to consider outdoor activities during the day. Jung said, "I had sleepless nights due to the heat lasting for several days, so I desperately wanted a vacation," adding, "I browsed sunglasses and swimsuits for my vacation at a cool indoor shopping mall while also going out for a little trip."

As tropical nights have continued for three days in Seoul and the whole country suffers from relentless heat day and night, people’s consumption patterns are changing. To avoid the sweltering heat, people are heading to indoor shopping malls, department stores, and marts with air conditioning instead of outdoor activities, and ice-cold drinks have been selling like hotcakes at convenience stores. With the onset of full-fledged heatwaves, demand for cooling appliances such as air conditioners and fans has also surged. On the other hand, traditional markets and barbecue restaurants are worried as customers have decreased due to the hot weather.

◇Department Store Sales Surge 30%... Demand for Cooling Appliances and Vacation Goods Up

According to the distribution industry on the 6th, sales at major department stores such as Lotte, Shinsegae, and Hyundai increased by more than 30% compared to the same period last year from the beginning of this month to the 4th. During this period, which included the weekend, people who went out to cool indoor places for outings browsed cooling appliances like air conditioners and fans and purchased vacation-related products in preparation for the upcoming summer holidays. They also had meals inside the department stores without leaving the building. Reflecting this pattern, Lotte Department Store’s food and beverage (F&B) sales jumped 50% compared to the same period last year, while sales of swimsuits (190%), sunglasses (95%), and suitcases (45%) also increased significantly. Air conditioner sales doubled from the 20th to the 30th of last month and rose by 5% during this period. Shinsegae Department Store also saw overall sales jump 36.9% during this period. Notably, sales growth rates for outdoor wear (58.4%) and women’s fashion (30.4%) were higher than luxury goods (25.5%). At Hyundai Department Store, the home appliance category, including air conditioners, surged 125.8% during this period. Sales of swimsuits (186.5%), sunglasses (100.4%), and outdoor wear (51.7%) also increased significantly.

The number of people shopping comfortably at large marts also increased. Emart saw a 5% increase in visitors compared to the same period last year from the beginning of this month to the 4th, and sales of cooling appliances such as air conditioners (223.2%), fans (285.8%), and circulators (62.4%) surged. Demand for cooling appliances at electronics stores also soared due to the heatwave. Lotte Hi-Mart’s air conditioner sales increased by 160% compared to the same period last year, and sales of fans, a representative summer appliance, rose 135%. At Electronic Land, sales of air conditioners (128%) and fans/circulators (96%) also jumped.

The number of people stopping by convenience stores to quench their thirst while walking in the heat also increased significantly. At CU, sales of ice cream (63.6%), iced drinks (54.4%), and ice (52.7%) were noticeably higher than the same period last year. GS25 saw a large increase in sales of ion drinks (86.5%), ice cups (72.3%), bottled water (63.4%), and ice cream (62.8%) during this period. Emart24 also experienced sales growth in ice cups (84%), small fans (64%), ice cream (63%), and bottled water (small size, 61%). Seven Eleven said, "Sales of products that can be consumed immediately cold, including non-alcoholic beer (100%), have increased significantly."

◇Traditional Markets and Barbecue Restaurants Struggle... "Double Burden of Prices and Electricity Consumption"

On the other hand, the number of people shopping at traditional markets noticeably decreased due to the scorching heat. On the afternoon of the 3rd, when the heat was intense, Mangwon Market in Mapo-gu, Seoul, was quiet except for some shops selling discounted fruits. A housewife, Ms. Lee (43), who came to shop, said, "It’s so hot that I only buy fruits and vegetables at the entrance and then leave," adding, "Even if I look around a little, sweat pours down, so I think it will be hard to visit during the sweltering heat for a while."

Barbecue restaurants are also deeply worried. With rising prices increasing cost burdens and customers who had barely returned due to the endemic (periodic outbreak of infectious diseases) now reluctant to visit barbecue restaurants again because of the heat from the grills, they have to run air conditioners strongly throughout business hours, which raises concerns about cost burdens. According to the Livestock Products Quality Evaluation Institute, the wholesale price of pork per kilogram rose to 6,454 won as of July 1. This is an increase of 7.8% and 31.2% compared to the same period last year (5,989 won) and in 2020 (4,919 won), respectively. The owner of a barbecue restaurant in Euljiro, Jung-gu, said, "Since COVID-19, most restaurants have raised prices by about 1,000 to 2,000 won to cope with soaring prices and are trying to endure, but prices are rising further," adding, "Everyone is cautious because raising prices further might reduce customers. If we don’t raise prices, we can’t make a profit even if we sell, so it’s a dilemma." He lamented, "Because of the heatwave, we have to run the air conditioner at full blast, and electricity usage is enormous these days," adding, "It’s not just the cost of ingredients that has risen, but also electricity bills, rent, and labor costs?all expenses have increased, so we are very worried."

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