South Korea’s retail sector saw a robust 8.2 percent year-on-year growth in January, largely driven by the strong performance of online platforms, according to the Ministry of Trade, Industry, and Energy.
The total sales of 25 major offline and online retailers reached 15.7 trillion won ($11.78 billion) last month, compared to 14.5 trillion won in the same period last year.
While offline store sales dipped by 0.3 percent, largely due to the timing of the Lunar New Year holiday, online platforms experienced a significant surge. Sales from online platforms jumped by 16.8 percent year-on-year, marking the sharpest increase since October 2021.
The increase in online sales was driven by strong demand for food and daily necessities, as well as a 13.2 percent rise in demand for electronics following the release of new smartphones.
Department stores saw a modest increase in sales, driven by imported luxury goods, while convenience stores saw a 6.1 percent increase in sales, led by ready-to-eat products. However, supermarkets witnessed a decline of 9.2 percent in sales compared to the same period last year.
Online platforms accounted for 53.6 percent of total sales in January, up from 49.7 percent a year earlier, indicating a growing trend towards online shopping among consumers.
The Ministry of Trade, Industry, and Energy expects this trend to continue in the coming months, driven by the convenience and variety offered by online platforms, as well as the ongoing impact of the COVID-19 pandemic on consumer behavior.
(Source: Korea Herald | Xinhua)
