"Worry Whether Chinese Come or Not"… 'Wuhan Pneumonia' Fear Hits Distribution Industry

27th Myeongdong, Department Stores, Duty-Free Shops Quiet
All Department Store Staff Wear Masks, Hand Sanitizers Provided
Sales Fell Over 10% Immediately After 2015 MERS Outbreak

The scene at Lotte Department Store Duty-Free Shop in Jung-gu, Seoul, on the 27th, overshadowed by the fear of the novel coronavirus infection (Wuhan pneumonia) (left), and the scene when a group of Chinese tourists visited on the 10th.

[Asia Economy Reporter Seungjin Lee] Fear of the novel coronavirus infection (Wuhan pneumonia) has swept through the offline retail industry. Due to concerns about the new coronavirus infection, both domestic and foreign customers visiting stores have decreased, putting the retail industry on edge.

On the afternoon of the 27th, the last day of the Lunar New Year holiday, Myeongdong in Jung-gu, Seoul was noticeably quiet. During the Chinese New Year, the Spring Festival (January 24?30), the streets would normally be bustling with Chinese tourists carrying shopping bags in both hands, but this day was different.

Most of the few tourists seen sporadically covered their faces with white masks, and the busiest stores in Myeongdong were pharmacies. At one point that afternoon, a pharmacy in Myeongdong was crowded with people trying to buy masks. As fear of Wuhan pneumonia grew, masks quickly sold out at pharmacies and drug stores near Myeongdong.

Park Mo (37), who runs a street stall in Myeongdong, said, “Compared to last year’s Lunar New Year, it seems there are noticeably fewer Chinese tourists this year,” adding, “It seems to be because of Wuhan pneumonia, but whether Chinese tourists come or not, it’s worrisome either way.”

On the afternoon of the 27th, people are lined up waiting to buy masks at a pharmacy in Myeongdong, Seoul.

The impact of the novel coronavirus was even more pronounced in duty-free shops, where sales heavily depend on Chinese tourists. The duty-free industry had seen a sales increase as the number of Chinese tourists recovered after the THAAD (Terminal High Altitude Area Defense) incident, which had caused a sharp decline, but now fears that the upward trend will be halted due to the new coronavirus.

The Lotte Department Store and Shinsegae Department Store duty-free shops near Myeongdong were so quiet that there were more employees than visitors. Although all employees wore masks to prepare for the spread of the novel coronavirus, the scene of the store being packed with Chinese group tourists on January 10 was nowhere to be seen.

A duty-free store employee explained, “It is a period when customers usually decrease compared to the end and beginning of the year,” but added, “Last year, group tourists came during the Spring Festival, but this year, possibly due to Wuhan pneumonia, there are no group tourists, only a few individual travelers.”

Domestic consumers visiting department stores also decreased due to concerns about the novel coronavirus infection. Although families typically visit department stores on the last day of the holiday, the department store officials said the number was relatively lower this year.

The reason the retail industry is paying close attention to the novel coronavirus is because it suffered significant sales losses during the MERS (Middle East Respiratory Syndrome) outbreak five years ago. According to the Ministry of Trade, Industry and Energy, department stores and large supermarkets saw sales drop by 11.9% and 10.2%, respectively, in June 2015, immediately after the MERS outbreak.

Meanwhile, the industry has begun establishing response systems to prevent the spread of the novel coronavirus and ensure employee safety. Lotte Duty Free formed an emergency response committee chaired by CEO Lee Gap on the 24th and is operating a continuous response system. Following the activation of the emergency response committee, Lotte Duty Free has made daily temperature checks mandatory for all employees and required mask-wearing for staff working in stores and delivery areas.