Sales of Distribution Companies in May, the 'Month of Family,' Up 12.9%... Department Store Luxury Goods Sales Increase

[Sejong=Asia Economy Reporter Kwon Haeyoung] With the increase in gift purchases in May, the 'month of family,' retail sales last month showed a double-digit growth compared to a year ago. Due to the inability to travel abroad because of COVID-19, department store luxury brand sales also increased by 36.6% compared to the previous year.

According to the 'May Major Retailer Sales Trends' announced by the Ministry of Trade, Industry and Energy on the 27th, online and offline retailer sales increased by 12.9% compared to the same period last year. Retail sales have shown double-digit growth for four consecutive months, from 10% in February, 18.5% in March, and 13.7% in April this year.

The Ministry analyzed that sales rose due to the base effect from COVID-19, recovery of consumer sentiment, and increased gift purchases in the month of family. Offline retailer sales increased by 8.8%, and online sales increased by 17.6% compared to the same period last year.

By business type, department store sales increased by 19.1%, while large discount stores and convenience stores increased by 5.6% and 4.6%, respectively. Sales at semi-large stores (SSM) decreased by 2.2%.

The increase in department store sales was thanks to luxury brand sales, which rose 36.6% compared to May last year. Luxury brand sales have shown double-digit growth every month since January this year. The proportion of luxury brands in total department store sales was recorded at 35.4%. The Ministry analyzed, "It seems that consumers buying luxury goods domestically increased as they could not travel abroad due to COVID-19."

With the increase in luxury sales, the number of department store purchases increased by 5.4%, while the purchase amount per person rose 13% from 101,823 KRW in May last year to 115,068 KRW.

Convenience stores saw sales increases in most categories such as processed foods including beverages (9.9%), miscellaneous goods (5.3%), and instant/fresh foods (1.7%) due to the spread of short-distance and small-quantity purchases.

On the other hand, semi-large stores saw a decline in sales as both food and non-food sales decreased.

Last month, online sales continued to increase as electronic and daily goods rental services and online grocery shopping became widespread.

Sales of service and other product groups such as home appliance rentals, food delivery, and e-coupons increased by 61.1%. Food (32.9%), cosmetics (19.4%), and home appliances/electronics (10.2%) also showed strong sales.