S.Korea dept, discount store sales both decline in May

Hyundai Department Store Co

29/06/2016 03:00

SEOUL, June 29 (Reuters) - Sales at top South Korean 
department and discount stores in May both fell and were worse 
than initially expected, finalised government data showed on 
Wednesday, backing policymakers' concerns over consumption 
softening in Asia's fourth-largest economy. 
    The trade ministry said sales at department store chains run 
by Hyundai Department Store  069960.KS , Lotte Shopping 
 023530.KS  and Shinsegae Co  004170.KS  fell 2.7 percent from a 
year ago. Preliminary data had shown a 1.5 percent rise. 
 urn:newsml:reuters.com:*:nL4N19002G 
    This snapped two months of gains and strongly undershot 
April's 4.3 percent rise in annual terms. 
    Children's clothes and sports goods had led the fall in 
department store sales, dropping 7.8 percent in May from a year 
earlier on changing trends, the trade ministry said. It added 
that fewer public holidays in May this year compared to 2015 had 
also taken a bite out of profits. 
    During the same period, discount store sales in May declined 
6.3 percent, the same trade ministry data showed. 
    Sports-related products also led the decline here, falling 
by 16.4 percent on-year. The ministry blamed fewer holidays and 
worsened air quality from last year that has led to fewer South 
Koreans spending time outdoors. 
    May discount store sales were worse than a 5.5 percent fall 
initially estimated by the finance ministry and compared 
unfavourably to a 1.7 percent gain in April. 
    The data came a day after minutes from the Bank of Korea's 
June 9 meeting showed all board members had expressed concerns 
about slowing consumption before cutting interest rates to a 
record low 1.25 percent in a unanimous vote.  urn:newsml:reuters.com:*:nL4N19K2IZ 
 
 (Reporting by Christine Kim; Editing by Eric Meijer) 
 ((christine.kim@thomsonreuters.com; 822 3704 5665; Reuters 
Messaging: christine.kim.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA ECONOMY/RETAIL