Retail sales plummet in Korea
Sales plunge in April by 9.8% year on year, and 13.9% on the previous month
South Korean retailers saw sales plunge in April, signalling that the domestic economy is in difficulty. According to figures for April released by the Ministry of Trade, Industry and Energy, sales at large discount store chains declined 9.8% from a year earlier and fell 13.9% compared to the previous month.
The ministry reported poor sales of food, clothes, sports goods and consumer electronics at discount chains. Sales were also poor for department stores and convenience stores. Chilly weather cut demand for spring time products and slow economic growth cut ‘back to school’ buying, the ministry added.
Sales at discount chains increased by 8.9% year on year in February but, in March, slumped 4.4%. Department store sales declined 1.9% in April compared to a year earlier due to sluggish annual sales promotions. Sales of menswear declined 10.4% while cosmetics showed a similar decline. Convenience store sales rose 8.3% in March, but this was a result of a 13.4% increase in outlet numbers. Sales declined on a same store basis.
