"Hard to Delay Further"… Department Stores Push Ahead with Spring Sales

Social distancing delayed by a week,

but delaying further risks being stuck with spring product inventory

Department stores to start spring sales from the 3rd of next month

Large marts begin essential goods discounts from today

Department store sale period scene (Asia Economy DB)

[Asia Economy Reporter Lim Hye-sun] As the government recommends practicing 'social distancing' until the 5th of next month due to the COVID-19 outbreak, large marts and department stores are pushing ahead with large-scale discount events from the 26th of this month until the 19th of next month. ▶Related article on page 3

On the 25th, large marts such as E-Mart and Lotte Mart announced they will hold discount events on essential goods. Major department stores nationwide, including Lotte, Shinsegae, and Hyundai Department Store, will launch their 'Spring Regular Sale' from the 3rd to the 19th of next month. Although the government is focusing administrative efforts to enforce strict social distancing until the 5th of next month, the retail industry, which suffered losses in the first quarter, finds it difficult to give up on large discount events.

There are criticisms that these sales go against the purpose of social distancing, but department stores and large marts maintain that "it is difficult to delay the sale period any further." Considering that spring regular sales usually start in mid-March or the last week of March, the schedule has already been delayed by more than a week, and missing the first weekend of April would risk leaving most spring products as inventory. According to the Ministry of Trade, Industry and Energy, Lotte Department Store’s sales from the 1st to the 15th of this month plummeted by 41.7% compared to last year. Shinsegae and Hyundai Department Store also saw decreases of 34.2% and 32.3%, respectively. Sales of women's clothing dropped by 45-60% compared to the same period last year. A department store official said, "Spring sales usually run for two weeks starting from the last Friday of March. If the sale period is delayed to mid-month, most fashion brand partners will have to bear the inventory."

The situation is similar for large marts. With the social distancing campaign in full swing, they believe large-scale discount events are necessary to revive the sluggish domestic market. In the agricultural and livestock sectors, the resupply schedule for vegetables such as spinach, green onions, and lettuce, as well as fruits, which were waiting for school meal deliveries, is uncertain, resulting in stockpiles of goods that need to be distributed over two weeks.

However, concerns are rising that if all department stores and large marts nationwide simultaneously hold discount events, tens of thousands of people will visit stores, potentially worsening the COVID-19 situation. Although it is only for two days, the overlap with the government’s social distancing period could lead to public criticism.

There are also opinions that suppressing essential spending activities related to food, clothing, and shelter is excessive. Professor Oh Myung-don of the Infectious Diseases Department at Seoul National University Hospital said, "The government’s quarantine policy has somewhat calmed the COVID-19 situation, but there are limits to continuing it. While there may be backlash if social distancing policies are immediately relaxed, it is necessary for the majority of society to discuss and reach a consensus based on scientific evidence."