"Thanks to Luxury and Fashion" ... Department Store's New Year First Sale Sales Grow Double Digits

Major department stores such as Lotte, Hyundai, and Shinsegae recorded double-digit sales growth compared to last year in their first regular New Year's sale. On the 16th, a customer is selecting Lunar New Year gift sets at a department store food hall in Seoul.
[Image source=Yonhap News]

Thanks to revenge spending following the prolonged COVID-19 pandemic and increased outerwear sales due to the cold wave, the first regular New Year sales at major department stores recorded double-digit growth in sales.

On the 17th, Lotte Department Store announced that sales from the regular sale held from the 2nd to the 16th of this month increased by 53.6% compared to the same period last year (January 3?17, 2021). Overseas fashion, including luxury brands, showed a high growth rate of 67%, and reflecting expectations for outdoor activities, sales of cosmetics (54.2%), men's sportswear (49.8%), and women's accessories (48.7%) also increased significantly. Additionally, with the Lunar New Year holiday arriving earlier than last year, gift set sales contributed to a 96.6% increase in food sales compared to the same period last year.

During the same period, Hyundai Department Store's regular sale sales also increased by 53% compared to the same period last year. Sales of luxury goods (78.1%), women's fashion (84.1%), and men's fashion (86.7%) rose sharply, and with more customers making exercise plans for the new year, golf (131.2%) and outdoor (127.1%) sales surged.

Shinsegae Department Store's sale sales increased by 54.4%. Similarly, luxury goods (77.9%), women's fashion (55.1%), and men's fashion (78.8%) performed well, and sales in the lifestyle category also grew by 21.6%.

An industry insider explained, "Last year, due to strengthened social distancing measures, department stores did not hold regular sales but only conducted discount events for each brand to clear inventory, so this base effect led to very good results this year. Despite the prolonged COVID-19 situation, expectations for outdoor activities in the new year significantly boosted sales in fashion sectors such as clothing and accessories, as well as cosmetics."