Department Stores Become Summer Retreats Amid Record Heat Wave... Summer Sale Sales Up 10%

Lotte Department Store Sees Double-Digit Growth in First Ten Days
Shinsegae and Hyundai Department Stores Post 5-6% Increases
Contrasts with Spring Season's 1-2% Growth Amid Prolonged Cold
Vacation Demand Rises, Indoor Spaces Preferred to Escape Heat
Department Stores Enhance Indoor Shopping Content to Attract Customers

The three major department stores are seeing strong results from their summer clearance sales, which began simultaneously on June 27. Analysts attribute this to the early end of the monsoon season and the arrival of unusually hot weather. Attention is now focused on whether this momentum can reverse the sluggish performance seen in the first half of the year, which was impacted by a domestic economic downturn and abnormal weather conditions.

According to industry sources on July 10, Lotte Department Store recorded a roughly 10% increase in total sales across all locations during the first ten days of the event, compared to the same period last year. The early onset of hot weather drove sales of seasonal sports items such as sandals and swimwear, which rose by nearly 20%, leading overall growth. Beauty product sales, including sunscreen and skincare items needed for outdoor activities during the peak summer vacation season, also increased by about 20%. Lotte Department Store's summer clearance sale, which runs through July 13, features more than 550 brands offering discounts of up to 50%.

Customers are browsing vacation items at the swimwear store on the 4th floor of AvenueL, Lotte Department Store Main Branch, Sogong-dong, Jung-gu, Seoul. Provided by Lotte Department Store

Shinsegae Department Store reported a 5.2% increase in sales during its sale period. By category, home appliances saw the highest growth rate at 12.7%, followed by cosmetics at 7.8%, men's fashion at 5.2%, women's fashion at 4.4%, and food at 4.3%. Shinsegae Department Store is also offering discounts of up to 50% on new summer arrivals and end-of-season items in fashion, accessories, and sports categories during the event. In anticipation of increased demand for vacation items due to the early heat, the store is offering up to 20% off popular swimwear brands and has increased brand inventory by more than 20% compared to last year.

During the same period, more than 200 brands participated in Hyundai Department Store's clearance sale, offering discounts of up to 50% off the original price on new summer arrivals and end-of-season items. Early sales during the event rose by 6.7% year-on-year. The fashion category grew by 10.7%, while the sports and outdoor category increased by 21.1%. Within these categories, sales of summer outerwear such as cardigans, shirts, and windbreakers surged by more than 30%, outpacing overall growth rates.

Previously, during the spring clearance sales, major department stores struggled to sell seasonal items due to weakened consumer sentiment caused by high inflation and persistently chilly weather through March and beyond. During that period, Lotte Department Store's overall sales increased by only 1% year-on-year, while Shinsegae Department Store and Hyundai Department Store posted growth rates of just 2.1% and 1.2%, respectively.

With the early end of the monsoon season, the ongoing summer clearance sales are being credited with boosting sales. An industry insider explained, "When rainy weather continues, consumers are hesitant to go out due to transportation and mobility issues. However, during heatwaves, more people plan gatherings or appointments in cool indoor spaces. This leads to increased demand for department stores, which offer dining and shopping infrastructure." The insider added that this is also a time when sales of eye-catching accessories and beauty products typically rise due to the vacation season.

Customers are browsing summer cardigan products at the "Time" store in Hyundai Department Store Pangyo branch. Photo by Hyundai Department Store

In response to this demand, the department store industry has strengthened its indoor shopping content. Lotte Department Store is hosting the first-ever Korean pop-up store for Acqua di Parma's "La Terrazza Club" at AvenueL Jamsil branch through July 13. Customers can experience three best-selling EDP fragrances from the "Blu" line, known for their refreshing citrus scents: Mirto di Panarea, Fico di Amalfi, and Arancia di Capri. At the main branch's B1 Plaza, a Crocs pop-up store is offering new products and a Jibbitz giveaway event.

Shinsegae Department Store is running a pop-up store and special promotion for the swimwear brand Looploop at its Gangnam branch through July 17. The store is also exclusively introducing cooling blankets in collaboration with premium bedding brand Freshfind, and offering discounted summer blankets and pads made with cooling fibers from brands such as Cozynest, AllerMann, and Sesa during the summer sale period.

Hyundai Department Store is holding a special exhibition, "Forever, the Painter," featuring French master Michel Delacroix at its Trade Center branch. The exhibition showcases more than 80 of his latest works, being revealed for the first time worldwide, along with a total of 120 pieces including rare early prints. The exhibition runs until August 31.