[The Economics of Heatwaves⑨] Turning Heatwaves into Opportunities... Retailers Say "Selling Coolness in the Heat"

Department Stores See 30% Sales Increase Due to Heatwave Special
Large Marts Experience Growth in Cooling Appliances and Fruit Sales
Ice Cups and Beverages Sell Like Hotcakes at Convenience Stores

[Asia Economy Reporter Lim Chun-han] Mr. Park, who lives in Gwanak-gu, Seoul, canceled his soccer plans with acquaintances and headed to a nearby shopping mall. The scorching heat made it impossible to consider outdoor activities during the day. Mr. Park said, "I couldn't even think about exercising after losing sleep due to the heat that lasted through the night for several days," adding, "I combined it with an outing and browsed clothes and sunglasses for my vacation at the cool department store."

Recently, as the entire country suffers from relentless heat day and night, people's consumption patterns are also changing. To avoid the sweltering heat, people are opting for air-conditioned department stores and large supermarkets instead of outdoor activities. Demand for cooling appliances such as air conditioners and fans has also surged at electronics retailers. Convenience stores have seen brisk sales of ice cups and cold beverages.

According to the distribution industry on the 30th, from the 1st to the 26th of this month, major department stores such as Lotte, Shinsegae, and Hyundai saw sales increase by 28-30% compared to the same period last year. Consumers purchased many vacation-related products in preparation for the upcoming summer holidays and bought cooling appliances like air conditioners and fans. Meals were also taken care of within the department store buildings without going outside.

Customers are shopping on the B1 floor of the Lotte Department Store Main Branch in Jung-gu, Seoul.

During this period, Lotte Department Store's overall sales increased by 30%. In particular, sales of swimwear (180%), sunglasses (75%), suitcases (75%), food and beverages (70%), and luxury goods (35%) rose significantly. Shinsegae Department Store saw overall sales jump 30.4%. Sales growth rates were high for swimwear (171.6%), food courts (86.5%), women's fashion (48.1%), men's fashion (42.8%), outdoor wear (33.0%), and luxury goods (24.2%). Hyundai Department Store's overall sales increased by 28.4%, with swimwear (182.1%), suitcases (161.6%), sunglasses (100.4%), and outdoor wear (51.2%) showing sharp sales increases.

More people are shopping at large supermarkets to stay cool. During the same period, Emart saw sales increases in fans (15.9%), grapes (25.4%), and peaches (16.2%), among cooling appliances and fruits. Lotte Mart experienced high sales growth rates in frozen meal kits (80%), beverages (20%), and fruits (15%). Homeplus saw increased sales of air conditioners (64%), fans (43%), and non-alcoholic beer (49%). Demand for cooling appliances also surged at electronics retailers. Lotte Hi-Mart's air conditioner and fan sales increased by 70% and 45%, respectively, compared to the previous month from the 1st to the 26th of this month. At Electron Land, air conditioner sales grew by 43%.

Customers are shopping at Starfield Goyang in Gyeonggi.

Convenience stores are also enjoying a heatwave boom as more people seek summer products. At CU, sales of tea beverages (27.1%), carbonated drinks (22.5%), ice cream (18.0%), iced drinks (13.9%), and cup ice (12.3%) increased compared to the same period last year. During the same period, GS25 saw significant sales growth in ice cups (77%), bottled water (63.8%), ice cream (60.2%), coffee beverages (45.4%), and iced drinks (43.6%). Seven Eleven sold well in Seven Cafe iced drinks (45%), ice cups (30%), ice cream (30%), bottled water (20%), and carbonated drinks (20%). Emart24 recorded high sales in ice cups (86%), small fans (63%), ice cream (66%), bottled water (58%), and pouch drinks (59%).

A distribution industry official said, "Due to the much hotter weather than last year, sales of summer products and food courts are surging," adding, "We will lead customer lifestyles with diverse content and differentiated marketing tailored to customer demand."