[Asia Economy Reporter Cha Min-young] Due to the impact of the novel coronavirus infection (COVID-19), untact (contactless) consumption has expanded, leading to an increase in online purchases of high-priced furniture and electronics such as beds and TVs, as well as premium food ingredients at department stores.
According to the related industry on the 16th, Shinsegae Department Store's online sales of fresh food in February increased by 378.4% compared to the same period last year, recording steady growth in beds (147.7%) and electronics (24.9%). In particular, while the combined online and offline sales growth rate for fresh food was only -17.1%, online growth was remarkable.
Shinsegae plans to strengthen online sales for customers seeking premium products as untact consumption expands. Earlier this year, Shinsegae opened a 'Department Store Food Hall' within SSG.com. It operates a total of about 900 items, focusing on premium food ingredients from the department store, including premium beef from cows under 60 months old and specially selected cuts, as well as ‘Geumsil Strawberry,’ known for its high sweetness. Last month, sales at the SSG.com Department Store Food Hall also rose 100.2% compared to January.
Currently, the number of items sold at the SSG.com Department Store Food Hall, which reaches about 900, is planned to increase to over 1,000 by the end of this month. The German luxury home appliance brand 'Miele,' which had not been sold before, also began sales last month.
Kim Young-seop, Head of Merchandise at Shinsegae Department Store, said, “With the expansion of untact consumption, online demand for premium department store products has steadily increased. Going forward, we will continue to expand premium brands that were not previously sold online, not only in fashion and luxury but also in lifestyle and food categories.”
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