Korea retail sales up 8.2% in 2024

Offline sales saw a modest 2% rise.

Retail sales in Korea grew 8.2% in 2024, driven by a 15% surge in online sales, according to the Ministry of Trade, Industry, and Energy (MOTIE). Offline sales saw a modest 2% rise.

The data, based on surveys of 23 major retailers, showed a growing shift toward e-commerce. Hypermarket sales dropped 0.8% as non-food demand fell 7.9%, despite a 2.3% rise in food sales. Super supermarkets (SSMs) grew 4.6% due to rising home dining trends and local shopping demand.

Convenience stores saw a 4.3% increase, nearly surpassing department stores, which rose by 1.4% after a strong December.

Online sales thrived amid challenges from foreign platforms, fuelled by a 22.1% jump in food products and a 58.3% spike in services like e-coupons and travel packages.

The gap between online and offline sales widened to 13 percentage points, up from 1.5 points in 2023.

Home appliances and cultural products (down 0.9 percentage points), fashion and miscellaneous goods (down 1.2 percentage points), and kids/sports categories (down 0.6 percentage points) saw declines due to weakening consumer confidence and the impact of overseas direct purchases (ODP). In contrast, food products (up 0.7 percentage points) and services/other categories (up 2.2 percentage points) saw notable gains.

In December alone, sales rose 8.9%, with online sales soaring 18.8% and offline sales dipping 0.3%.