Input 2021.04.05 14:08
In addition to luxury goods, fashion, sports and miscellaneous goods each grew by 50%
On the 3rd, when the rain was pouring out, major department stores in downtown Seoul were crowded with people who went shopping from the morning. This is because customers visited the department store for the regular sale that started from the day before. Waiting lines were lined up early in luxury stores, and it was difficult to find empty seats in underground food and beverage stores as people came to eat. At 12:10 on that day, 240 teams received a waiting number at the Chanel store in the main branch of Shinsegae Department Store in Myeongdong.
The average sales growth rate of the three major department stores last weekend (2-4 days), when the sale began, was 59.9%. Lotte Department Store’s sales increased by 46% compared to the same period last year (April 3-5, 2020). Shinsegae Department Store and Hyundai Department Store also increased by 62.5% and 71.3%, respectively. Department store sales increased by 47.4%, excluding new stores added in the past year, such as The Hyundai Seoul, Hyundai Premium Outlets Space One, and Daejeon.
In particular, the growth trend of the fashion division, which had sluggish sales during the coronavirus period, was outstanding. At Lotte Department Store, overseas luxury goods (74%), children (68%), golf (58%), men’s and sports (54%), and miscellaneous goods and women’s fashion (54%) grew evenly. Shinsegae (004170)Department stores also showed good sales of luxury goods (76.4%) and women’s fashion (70%), men’s fashion (59.5%), and sports (54%). Hyundai Department Store also showed high growth rates in luxury goods (121.5%), women’s fashion (88.1%), men’s fashion (81.7%), and sports (71.9%).
Sales of suburban outlets also increased. Lotte Shopping (023530)The sales of these six suburban outlets were up 49% year-on-year as a result of a total of last weekend’s sales. By segment, sales increased in the order of children (65%), golf (60%), overseas luxury goods (56%), men’s sportswear (53%), miscellaneous goods and women’s fashion (39%).
In the industry, there is also a reason that the base effect from the corona crisis last year worked, but it was interpreted that consumption patterns are normalizing as expectations for easing social distancing from the spread of vaccines increase. Compared to the spring sale period in 2019, Shinsegae Department Store’s sales increased 44.2% and Hyundai Department Store’s 14.8% (based on existing stores).
An official at a department store explained, “Last year, the performance was sluggish outside of luxury goods and living, but since March, all product groups such as fashion, miscellaneous goods, and sports have been showing even sales growth.” .
Offline sales, which went downhill after Corona 19, have been growing since last February. According to the sales trend of retailers in February this year announced by the Ministry of Trade, Industry and Energy, sales of offline retailers increased by 14.3%. This is the first time that offline sales have increased by double digits in the past two years. Online sales, which showed double-digit growth every month since Corona 19, increased only 5.5%.
Park Jong-ryul, a researcher at Hyundai Motor Securities, said, “A fast and strong recovery will proceed as retaliation consumption, which was suppressed by the prolonged period of Corona 19, and compensatory sentiment for not being able to travel abroad will take effect. Department store growth will turn to 5.3% this year,” he predicted.