"No Mask and Early Cherry Blossoms"... Impact on Department Store Spring Sales

Spring Sale 10-Day 10% Sales Growth
Outdoor, Color Cosmetics, F&B Lead
Sale Extension and Renewal Strengthened Amid Recession Concerns

This spring, flowers have bloomed even during department store regular sales. With the indoor and outdoor 'no mask' policy strengthening the endemic (periodic infectious disease outbreak) atmosphere, and cherry blossoms blooming earlier than usual this year, contrary to expectations that indoor shopping demand would slow down, sales growth has appeared, led by men's and women's fashion, sports, and beauty products needed for outdoor activities. The department store industry plans to extend the regular sale period to avoid a base effect caused by the explosive shopping demand since the social distancing measures were lifted on April 18 last year due to COVID-19, and to maintain the momentum by mobilizing group-level events.

Customers are browsing spring clothing at the Duell store in the Lotte Department Store main branch.
[Photo by Lotte Department Store].

According to the distribution industry on the 10th, the three major department stores?Lotte, Shinsegae, and Hyundai Department Store?recorded a double-digit sales growth rate in the 10-day spring regular sale period (March 31 to April 9) this year. Lotte Department Store saw a 10% increase in total sales during this period. With increased outdoor activities, sales of sportswear rose by 15%, outdoor wear by 15%, and athleisure (such as yoga wear and swimwear) by 45%, while color cosmetics also increased by 25%. Due to early warm weather and the expansion of domestic and international travel, sales of swimwear rose by 90%, sunglasses by 60%, and luggage by 155%. Food and beverage (F&B) sales also increased by 25%. Shinsegae Department Store also saw total sales increase by 10.0%, supported by growth in F&B (24.5%), outdoor wear (17.0%), sportswear (11.5%), and women's fashion (7.6%). Hyundai Department Store achieved a 10.2% overall sales growth, driven by increases in young fashion (23.7%), F&B (20.3%), sports (16.4%), color cosmetics (14.4%), and women's fashion (13.4%).

Earlier, first-quarter (January to March) department store sales are also expected to have increased by single digits compared to the same period last year. According to the Ministry of Trade, Industry and Energy, department store sales decreased by 3.7% year-on-year in January due to the early Lunar New Year and the resumption of overseas travel, but increased by 8.6% in February due to increased outdoor activities and early promotions of spring new products. Significant growth was seen in women's casual wear (30.1%), children's and sportswear (18.1%), women's suits (15.8%), men's clothing (12.8%), and accessories (12.7%). March is also estimated to have seen existing store sales increase by around 10%.

The industry is paying close attention to the situation after mid-April. Since social distancing was lifted on April 18 last year, remote workers have returned to offices, and indoor and outdoor activities have resumed without previous restrictions, department store sales surged explosively, led by high-margin men's and women's fashion and sportswear. Growth rates were in the 19% range for April, May, and June, followed by increases of 31.6% and 24.8% in July and August, respectively.

To extend the current momentum through the remaining spring and into summer, department stores are lengthening the spring regular sale period beyond previous durations and responding with group-level events. They plan to proactively respond to changing trends through department store renovations.

Lotte Department Store is participating in the 'Lotte Day' event held simultaneously by eight Lotte distribution companies. Until the 16th, the department store app offers a 15% discount coupon (up to 30,000 KRW) to the first 50,000 customers who purchase fashion products worth 200,000 KRW or more. Additionally, promotions offering up to 7% gift certificates or L.Points depending on purchase amount and payment method are underway, allowing customers to receive up to approximately 20% in purchase benefits. Shinsegae Department Store is conducting the spring sale event 'Shinbaek Festa' for about a month until the 27th of this month. Compared to the usual spring regular sale period that lasts until mid-April, this is an extension of about ten days. Customers who purchase fashion, living, or watch and jewelry items above a certain amount receive gift certificates, and special price events are held for popular sports and accessory brands such as Nike and Converse. Hyundai Department Store renovated its Pangyo branch last month, unveiling a specialized overseas contemporary brand hall on the second floor. The Mokdong branch opened an MZ generation specialty hall in the annex.

A distribution industry official said, "From the family month, considered the peak season for department stores, through the summer vacation season in July and August, the high base level is causing tension in the industry. Since this spring is also progressing better than concerns despite early cherry blossom blooming and weather variables, we will focus on attracting customers by offering trendy assortments and expanding promotions."

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