Steps Toward Lifting Social Distancing
Expectations for In-Store Sampling at Marts
Department Store Fashion and Cosmetics Sales Up
Wedding Promotions in Full Swing
Lotte Department Store expects a surge in "big-spending" wedding customers due to the lifting of social distancing measures and has launched related events. Wedding customers are receiving consultations at the Lotte Department Store main branch.
As social distancing measures due to COVID-19 are effectively coming to an end after 2 years and 1 month, the retail sector is also showing signs of revival. Large supermarkets are preparing for more vibrant operations, such as the revival of tasting corners, while department stores expect that the easing of psychological burdens during the active outdoor spring and summer seasons will lead to increased sales, and they are intensifying related marketing efforts.
According to the distribution industry on the 18th, large supermarkets cited the revival of tasting corners, which had been suspended since July last year, as the most anticipated aspect following the lifting of social distancing. The government has effectively ended the social distancing measures introduced in March 2020 to respond to the spread of COVID-19 as of today. The private gathering limit, which had been capped at 10 people, was lifted from 5 a.m. today, and the operating hour restrictions for multi-use facilities, which had been until midnight, have also been removed.
Large supermarkets explained that they expect the revival of tasting corners because they have a high probability of leading to purchases after tasting and can attract customers by providing an ‘experience element’ that differentiates them from online grocery shopping. Although supermarket sales avoided a significant decline during the COVID-19 situation due to the spread of the ‘home meal culture,’ sales for January to March this year remain at a similar level to last year. Emart’s sales from January to March were 3.875 trillion won, showing only a 1% increase compared to the same period last year. Since food accounts for more than 60% of large supermarket sales, exceeding half, there is great anticipation for sales promotion effects following the revival of tasting corners.
A representative from a large supermarket said, "The number of confirmed cases is gradually decreasing, and overall safety awareness is rising, so we expect the revival soon," adding, "We anticipate an increase in customers visiting supermarkets with their families to enjoy tasting and shopping." However, they noted that for tasting events to fully resume, time will be needed to establish specific guidelines from the government and local governments, as well as consultations between supermarkets and food manufacturers. Another large supermarket representative said, "Technically, we can start immediately, but coordination with related agencies will take some time."
Department stores also expect additional sales growth due to the easing of psychological burdens. With the formation of an endemic (periodic outbreak of infectious diseases) atmosphere, this month’s spring regular sales at department stores were successful. Major department stores such as Lotte, Shinsegae, and Hyundai Department Store saw their spring regular sale sales from the 1st to the 17th increase by 20-28% compared to the same period last year. In Shinsegae’s case, outdoor (45.3%), men’s fashion (29.7%), and women’s fashion (28.4%) all exceeded the total growth rate (28.2%) during this period. Sales of color cosmetics, which had been sluggish due to reduced outdoor activities, also noticeably increased.
With the removal of wedding guest limits, related marketing is also being intensified. Lotte Department Store will start a wedding promotion event from the 22nd, featuring a total of 26 brands including overseas luxury jewelry, watches, electronics, and furniture. Lotte Department Store stated, "From mid-October last year, when social distancing guidelines were eased, to March this year, the number of new subscribers has more than doubled compared to before," and added, "As postponed weddings due to COVID-19 are now in full swing, related demand is expected to increase further."
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