Offline Down 2.4% Due to Monsoon and Late Chuseok... Overall Up 6.6%
[Asia Economy Reporter Moon Chaeseok] With the expansion of the novel coronavirus infection (COVID-19) leading to increased contactless consumption, online retail sales last month rose by 20.1% compared to the same month last year. Overall sales increased by 6.6%. Due to the rainy season and a later Chuseok holiday than last year, offline sales decreased by 2.4%.
According to the sales trends of major retailers last month announced by the Ministry of Trade, Industry and Energy on the 29th, online sales increased by 20.1% compared to the same month last year, while offline sales decreased by 2.4%. This data was compiled from 13 offline retailers and 13 online retailers.
Retail sales showed an increasing trend for five consecutive months starting from April, right after March when the impact of COVID-19 was significant. This was due to the activation of the online retail market driven by increased contactless consumption resulting from social distancing measures. Offline sales recorded negative growth for seven consecutive months starting from February.
Offline sales declined due to reduced outings and travel caused by COVID-19, a later Chuseok holiday than last year, and the longest rainy season on record.
By business type, sales decreased in semi-large stores (SSM, -7.6%), department stores (-6.5%), and large discount stores (-2.3%). However, convenience stores saw a 2.3% increase due to higher sales of daily necessities such as masks and hand sanitizers.
On the other hand, online sales continued to perform well due to the spread of contactless consumption influenced by COVID-19 and increased indoor activities.
In particular, sales of food (43%), home appliances and electronics such as air conditioners and fans (28%), and household goods and furniture (25.4%) increased, which are related to indoor activities. Due to the impact of social distancing, consumption of travel and performance-related products continuously declined, resulting in a decrease in service and other sales (-6.3%).
Looking at the sales composition ratio by business type combining both online and offline retailers, the online share increased to 45.2%, up from 40.1% in the same month last year.
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