Korean retailers have made the most of the early May holiday period, as their sales soared with a massive flock of foreign tourists visiting the country.
According to Shinsegae Department Store, the sales at the Myeong-dong main store in central Seoul and the Centum City Branch in Busan from May 1 to 5 jumped 359 percent and 298 percent, respectively, from the same period last year. Total sales at all of Shinsegae stores rose about 35 percent on-year.
Lotte Department Store said transactions by foreign customers doubled during the May holiday period in comparison to the same span last year. Sales at Lotte’s Myeong-dong and Busan stores went up by 90 percent and 200 percent, while overall sales grew by approximately 30 percent on-year.
The total growth rate of sales at Hyundai Department Store reached 36 percent during the spring holiday. In particular, sales to foreign nationals at The Hyundai Seoul — a popular tourist destination — increased by 155 percent.
Korea’s duty-free shop operators also enjoyed the wave of foreign visitors during the holiday season. Lotte Duty Free posted 43 percent year-over-year growth, while Hyundai Duty Free logged a 77.1 percent increase in sales to those from overseas. Shinsegae Duty Free said sales at its Myeong-dong store surged 17 times.
Besides the traditional large retailers, up-and-coming retailers as well as convenience stores enjoyed the May holidays.
Beauty retail leader CJ Olive Young saw its sales to foreign nationals rise by 44 percent from the same period last year. At the CJ Olive Young N Seongsu in eastern Seoul, over 80 percent of the total sales were generated by foreign customers. Increased spending by foreigners was also found at regional Olive Young stores as the Gwangju, Daejeon and Cheongju, North Chungcheong Province, footholds logged week-over-week sales increases of 53 percent, 69 percent and 43 percent, respectively.
Fashion retailer Musinsa said 12 of its global customized stores in major tourist districts across the country posted a 30 percent week-over-week sales boost, with combined sales growth of 41 percent at two stores in Seongsu-dong, Seoul.
Convenience store brand 7-Eleven experienced 150 percent year-over-year growth in transactions via Chinese online payment app Alipay and Chinese leading card UnionPay during the May holiday period. CU saw a 68 percent increase in sales by overseas payment methods.
According to the state-run Korea Tourism Organization, 220,000 Japanese and Chinese travelers visited Korea between April 29 and May 6, up about 40 percent from the same period last year, as Korea’s neighboring countries underwent major spring holiday periods during the span.
hwkan@heraldcorp.com
