South Korea retail sector up 6.3% YoY in July

Offline sales, however, declined by 3%.

South Korea's retail industry saw a 6.3% year-on-year growth in July 2024, driven by a 16.9% surge in online sales, according to the Ministry of Trade, Industry and Energy (MOTIE). 

Offline sales, however, declined by 3.0% due to fewer holidays and more frequent rains.

Department stores were hit the hardest, with sales dropping 6.4%. Hypermarkets also struggled, with a 7.9% decline. Convenience stores and super supermarkets (SSMs) saw slight growth, up 2.9% and 1.4%, respectively, as more consumers shopped locally.

Online retail sales, meanwhile, surged by 16.9%, fueled by a heatwave that drove demand for stamina health foods and sunscreen products. This resulted in a 21% rise in food product sales and a 16.3% increase in cosmetics.

Whilst categories such as food delivery services, detergents, and daily household goods saw significant growth, with the service/other category up 61.6% and living furniture up 12.8%, sales in fashion/clothing and sports categories experienced declines of 9.6% and 7.8%, respectively.

MOTIE’s monthly retail sales report is based on data collected from 23 major retailers, including 13 brick-and-mortar operators—spanning department stores, hypermarkets, convenience stores, and super supermarkets (SSMs)—and 10 online retailers.