S.Korea June dept store sales surge to over 5-yr high on MERS base effect

Hyundai Department Store Co

28/07/2016 03:00

SEOUL, July 28 (Reuters) - South Korea's department store 
sales accelerated to a more than five year high in June, trade 
ministry data showed on Thursday, thanks to a weak comparison 
base stemming from last year's Middle East Respiratory Syndrome 
(MERS) outbreak. 
    Combined sales at department stores run by Hyundai 
Department Store  069960.KS , Lotte Shopping  023530.KS  and 
Shinsegae Co  004170.LS  were estimated to have jumped 11.8 
percent from a year earlier, the trade ministry said, which 
would mark the sharpest gain since a 15.1 percent spike in April 
2011.  
    This far eclipsed the 2.7 percent decline in May and 
compared to an 11.9 percent drop in June last year when the MERS 
outbreak peaked and kept shoppers away from crowded areas like 
department stores and malls. 
    The same data showed discount store sales in June rose just 
0.9 percent from a year earlier, rebounding modestly from a 6.3 
percent fall in May. 
    At discount stores, demand for outdoor goods and apparel 
rose compared with last year, but sales were capped on the lower 
popularity of face masks and sanitisers, which were snapped up 
during the MERS outbreak. 
    Meanwhile, sales at online social commerce websites like 
Coupang (www.coupang.co.kr) and Ticketmonster 
(www.ticketmonster.co.kr) rose 10.1 percent in June on-year, 
slowing from 23.9 percent in May. 
    Online open market sales at websites owned by eBay Korea Co 
Ltd and others gained 17.1 percent over a year earlier in June, 
compared to a 25.9 percent rise in May. 
    The trade ministry said it would start providing breakdowns 
of online sales data starting this month as South Koreans 
increasingly make more purchases of goods over the internet. 
 
 (Reporting by Christine Kim; Editing by Sam Holmes) 
 ((christine.kim@thomsonreuters.com; 822 3704 5665; Reuters 
Messaging: christine.kim.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA ECONOMY/RETAIL