Published: Aug 27, 2024, 18:26
Coupang delivery van in a parking lot in Seoul (YONHAP)
Retail sales in Korea rose 6.3 percent in July from the same period last year, driven by strong performance from online platforms. However, offline stores saw a decline in sales due to unfavorable weather conditions, the Industry Ministry said on Tuesday.
Combined sales of 23 major offline and online retailers reached 14.8 trillion won ($11.13 billion) last month, compared with 13.9 trillion won a year earlier, according to data compiled by the Ministry of Trade, Industry and Energy.
Sales on online platforms rose 16.9 percent to 7.57 trillion won as online shopping for daily necessities and services has become commonplace.
Specifically, food sales on online platforms increased by 21 percent and demand for services increased by 61.6 percent in July.
Online platforms have seen double-digit revenue growth since September 2023.
However, according to the ministry, brick-and-mortar retailers suffered a decline in sales due to unfavorable weather conditions and the lower number of weekends in July this year compared to the previous year.
Sales of offline retailers fell by three percent to 7.18 trillion won.
Sales at department stores fell by 6.4 percent and those at discount chains such as E-Mart and Lotte Mart fell by 7.9 percent compared to the previous year.
In contrast, convenience stores reported a sales increase of 2.9 percent and smaller supermarkets recorded an increase of 1.4 percent.
In terms of items, demand for electronics and cultural items fell by 13.2 percent, and children’s and sporting goods saw a decline of 9.3 percent in offline retail.
According to the data, online platforms accounted for 51.3 percent of total sales in July, compared to 46.7 percent a year earlier.
The ministry usually analyses the sales of 25 online and offline retailers for its monthly retail sales report, but the July report did not include two e-commerce platforms, WeMakePrice and TMON, due to their late payment issues, officials said.
Yonhap
