Retail Sales in S.Korea up 5.7% on Lifting of Anti-Covid Curbs

Retail sales in South Korea rose 5.7 per cent on-year in the first half of this year amid eased anti-Covid curbs and people's growing outdoor activities, the Industry Ministry said on Wednesday.

The combined sales of 25 major offline and online retailers came to 85.4 trillion won ($66 billion) during the January-June period, compared with 80.8 trillion won a year earlier, according to the data compiled by the Ministry.

The increase was attributable to a low base effect as more people turned to outdoor activities amid the stabilised virus situation and the government's lifting of anti-virus restrictions this year, reports Yonhap News Agency.

In March, the government removed the mask mandate on public transportation, around two months after the removal of the mandate for most indoor spaces, in a major step toward returning to pre-pandemic normalcy.

Sales of offline retailers advanced 4.3 per cent on-year to 4.29 trillion won in the first half.

Demand for food also grew, while that for electronics and housing items marked an on-year fall.

Department stores saw their sales rise 2.5 per cent, and sales at discount chain stores, such as E-Mart and Lotte Mart, increased 1 per cent on-year.

Convenience stores enjoyed 9.5 per cent sales growth, thanks to strong demand for smaller food packages and everyday items.

The sales of smaller supermarkets also expanded 2.2 per cent on-year in the first half, the data showed.

Online platforms saw their sales advance 7.2 per cent to 42.53 trillion won, as online shopping for food items, cosmetics and other services has become commonplace.

Online platforms accounted for 49.8 per cent of total sales in the first half, up from 49.1 per cent the previous year, the Ministry said.

In June alone, retail sales increased 6.6 per cent on-year due mainly to a low base effect despite a recent slowdown in domestic demand.

Sales of offline retailers grew 4.2 per cent on-year to 7.02 trillion won last month, and those of online platforms surged 9.1 per cent on-year to 7.09 trillion won, it added.