Korean retailers' sentiment falls for Q3

South Korean retailers' confidence for the third quarter fell slightly due to persistent concerns about sluggish economic growth, a poll showed Wednesday.

The retail business survey index came to 103 for the July-September period, down from 105 tallied for the last quarter, according to the survey of 943 retailers by the Korea Chamber of Commerce and Industry (KCCI).

Despite the dip, the index has remained above the benchmark 100 mark since the third quarter of 2009, peaking at 125 in the second quarter of 2011. A reading above 100 means optimists outnumber pessimists.

It said retailers expected hot weather to trigger demand for various summer recreational items and clothing, with the London Olympics contributing to sales.

"The index stayed above the 100 point mark, but more retailers expressed concerns that there may be a drop in consumption triggered by troubling developments in overseas and domestic markets," the KCCI said in a statement.

Seoul said last week that Asia's fourth-largest economy is expected to grow just 3.3 percent in 2012, down from 3.6 percent in the previous year.

The latest business poll showed 37.8 percent of the respondents worried about weak sales in the three month period, with 19.2 percent concerned about a drop in earnings and 8.2 percent troubled by prospects of higher product costs.

Retailers also said slower growth could lead to stiffer competition, with 10.5 percent concerned about growing government regulations in the distribution sector.

The KCCI, meanwhile, said home shopping malls have the brightest third quarter outlook, with the index for the sector reaching 134. Online malls expect summer temperatures to keep people from going out to buy products.

The index for department stores and neighborhood supermarkets stood at 109 and 103, respectively, while large discount chains stood at 87, according to the business survey. (Yonhap News)