Discount outlet, department store sales tumble

Sales at South Korea’s major discount outlets and department stores fell from a year earlier last month, the government said Thursday, apparently reflecting worsening consumer sentiment amid rising prices.

Sales at the country’s three major discount outlet chains dropped 7.2 percent in June from the same period in 2011, according to the Ministry of Knowledge Economy. The outlet chains are Lotte Mart, E-Mart and Homeplus.

June marked the third consecutive month combined sales of the three outlet chains lost ground on a year-on-year basis.

“Sales of fresh foodstuff fell amid price gains caused by floods and scarce supplies, which, along with the newly-enforced shutdown (of outlet stores) on Sundays, led to weak sales,” the ministry said in a press release.

The shutdown system, aimed to helping to protect traditional marketplaces and small stores, apparently affected performance at discount outlets, since sales of foodstuff and other major items contracted from a year earlier. Home appliance sales dropped by the largest margin of 14.4 percent on-year.

Combined sales of the three major department store chains here also made a turnaround from a 1 percent gain in May by falling 2 percent from a year earlier.

The drop was largely led by weak demand in men and women’s suits, which the ministry said was caused by the growing popularity of cool and simple work clothes during the hot season.

Sales of men’s suits plunged 9.7 percent on-year in June, with those of women’s clothing also falling off 6 percent, according to the ministry. (Yonhap News)