Has Consumer Sentiment Hit Rock Bottom... People Wearing Masks Stepping Outside Their Homes

Moving to Suburbs as Weather Warms Up

Increased Use of Distribution Facilities such as Department Stores

[Asia Economy Reporters Lim Hye-sun, Cha Min-young] Consumer sentiment, which had been stiffened by the novel coronavirus infection (COVID-19), has hit bottom and is showing signs of recovery. As the weather warms up, more people are moving to nearby suburbs, and despite confirmed patients visiting distribution facilities such as department stores, no secondary infection cases have appeared, leading consumers to wear masks and step outside their homes. However, some voices say it is too early to consider this a recovery phase, warning it might be just a 'brief warm breeze.'

According to the distribution industry on the 30th, Lotte Department Store's total sales over the past weekend (March 27-29) increased by 14.3% compared to the previous week. Considering that weekend sales from March 20 to 22 rose by 6.1% compared to the previous week, it is interpreted that sales, which had been declining every week, are gradually recovering. A Lotte Department Store official explained, "Weekend sales and the number of visitors are showing an increasing trend compared to the previous week," adding, "As the weather warms, demand for spring products is emerging, and women, who are the main customers for fashion products, are moving around, showing a recovery starting with women's clothing."

Last weekend, women's clothing sales increased by 69.0% compared to the previous week. Sales of men's clothing, food, and home appliances also rose by 8.0%, 8.0%, and 9.0%, respectively. Hyundai Department Store's weekend sales also increased by 22.4% compared to the previous week. Sales of women's clothing and luxury goods rose by 35.2% and 31.7%, respectively.

Comparing weekly sales throughout March with the same period last year, the atmosphere has somewhat improved. Shinsegae Department Store's 4th week (March 22-28) total sales decreased by 13.4% year-on-year. However, weekend sales alone grew by 0.4%. Sales in the 1st week (March 1-7), 2nd week (March 8-14), and 3rd week (March 15-21) declined by 38.6%, 30.0%, and 17.5%, respectively.

As more people go on outings to nearby suburbs due to the warm weather, a favorable wind has also blown through surrounding outlets, convenience stores, and restaurants. On the 29th, Heyri Art Village in Paju, Gyeonggi Province, was so crowded with visitors that parking was impossible. Kim, who operates an Italian restaurant there, said, "Since mid-month, people have started coming to Heyri Village, and sales are showing signs of recovery." A nearby convenience store, A, saw a 44% increase compared to the previous month. Sales at Shinsegae and Lotte Premium Outlets also rose by 10-30% compared to the previous week.

Professor Lee Eun-hee of Inha University's Department of Consumer and Child Studies said, "It seems that the instinctive desire for social life, which had been suppressed through online shopping to avoid COVID-19, is gradually being released." However, she diagnosed, "Since consumption is fundamentally an act of preparing for the future, it is still too early to say that consumer sentiment has rebounded amid an unstable situation with job losses and the closure of local bakeries and chicken shops."