The Korea Herald

피터빈트

Participants in Korea Black Friday event report spike in sales: data

By KH디지털2

Published : Oct. 14, 2015 - 15:43

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Retailers taking part in a nationwide consumption-promoting campaign have reported a jump in sales, data showed Wednesday, pointing to its positive impact on spurring domestic demand.
  

According to the data by 92 retailers, sales rose from Oct. 1 through Sunday, with many expressing satisfaction with the first ever nationwide sales event, the Ministry of Trade, Industry and Energy said.
  

The government and large retailers organized the Korean version of Black Friday shopping season in the United States after consumer spending plunged in the wake of the Middle East Respiratory Syndrome scare. The outbreak of the contagious disease, which was first confirmed in late May, seriously hurt consumption up till early July and poured cold water on growth.
  

The event will end on Oct. 14, with policymakers confirming that it will be held again next year.


According to the data, sales at the country's leading department stores such as Shinsegae, Lotte and Hyundai surged 24.7 percent on-year. Sales at local home shopping malls and Internet duty-free shops soared 26.7 percent, while large consumer electronics retailers like ET Land and Himart reported sales jumps of 18.7 percent compared to the same period last year.
  

Even sales at large discount chains Lotte Mart, E-mart and Homeplus rose 4.3 percent.
  

"This gain is noteworthy because sales at large discount chains usually fall after the Chuseok holidays," the ministry said.
  

Discount chains rely heavily on groceries to generate earnings, so Chuseok, or Korean Thanksgiving, results in a spike in sales followed by a sharp contraction after the three-day holiday is over. This year, Chuseok, celebrated according to the lunar calendar, fell on Sept. 27.
 
 
Sales at convenience stores rose 32.3 percent on-year, with some 78 percent of the 200 traditional markets taking part in the Black Friday event, confirming better earnings compared to last year.
  

Of the total, 10 percent of traditional markets reported sales jumps of 30 percent on-year in the 11-day period.
  

"Retailers that have taken part have said the Black Friday shopping event claimed renewed vibrancy and said the sales event attract more customers," the ministry said.
  

It, however, said a lack of preparation and advertisement resulted in consumers and retailers not being fully aware of the discount event taking place in some 34,000 stores across the country.
  

The ministry said it plans to carefully review the sales event so it can better plan for next year so as to better meet the expectations of consumers and retailers. (Yonhap)