Luxury and Fashion Revenge Spending Power... Department Store Sales Recover to Pre-COVID Levels

Spring Regular Sale Sales Increase Up to 51%

[Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] Department stores' sales during this year's first regular sale have increased significantly compared to the pre-COVID-19 period. Although concerns about the spread of COVID-19 continue, suppressed consumer sentiment appears to have revived, centered on luxury goods and clothing.

According to the department store industry on the 19th, the sales growth rate during the 17-day spring sale starting from the 2nd of this month was 40% for Lotte Department Store, 51.1% for Shinsegae Department Store, 43.9% for Hyundai Department Store, and 45% for Galleria Department Store compared to last year's sale period (April 3-19, 2020). Even compared to the spring sale in 2019, the sales of these four department stores increased significantly by 19% to 64%, indicating that consumer sentiment has recovered to pre-COVID-19 levels.

The product category with the highest sales increase was undoubtedly luxury goods. Shinsegae Department Store's luxury sales surged by 79.4% compared to last year's sale, Hyundai Department Store by 76.9%, and Lotte Department Store's overseas luxury goods also increased by 65%.

The recovery in sales of fashion products, which were severely impacted last year, was also remarkable. Women's fashion sales improved significantly compared to a year ago, with Hyundai at 48.1%, Shinsegae at 45.2%, and Lotte at 38%. Men's fashion sales were also high, with Hyundai at 51.3% and Shinsegae at 39.8%. In the case of Lotte Department Store, men's and sportswear sales increased by 39%, slightly higher than the growth rate of women's fashion.

As in the previous year, interest in interior items such as home appliances and bedding continued, leading to a sharp increase in sales of daily necessities during this sale period. Lotte Department Store's home appliance sales rose by 27%, and Shinsegae Department Store's sales of daily necessities, including home appliances, increased by 25.8%.