Korea‘s retail market growth to slow down in 2012

South Korea’s retail market growth is expected to slow down next year due mainly to the sluggish economy, which could cause a decline in real income stemming from increasing inflationary pressure, an industry report showed on Wednesday.

According to the report by the Shinsegae Retail Research Institute, South Korea’s retail market will grow 6.9 percent on-year to 232 trillion won ($20.2 billion) in 2012, compared with this year’s growth estimate of 8.2 percent and an estimate of 217 trillion won this year.

Department stores are predicted to see their sales grow 9.9 percent to a record 29.7 trillion won in 2012, while sales of large discount outlets will reach 39.8 trillion won with a growth rate of 7.7 percent.

Online shopping malls, however, are likely to post double-digit growth next year, climbing 17.8 percent to 35.7 trillion won, the highest growth rate among local retailers, the report said.

(Yonhap News)