Despite weakening consumer confidence due to the prolonged economic recession, local retailers are enjoying a steady growth of “VIP customers” who buy luxury goods regardless of the deteriorating market condition, according to industry insiders on Monday.

Overall sales figures show no signs of improvement, but the portion of big spenders are growing as well as the amount of money they spend at department stores, they said.

Customers classified as the most valuable guests by Lotte Department Store, spent 9 percent more last year than the previous year. However, the retailer saw an only 1 percent increase in general sales.

The portion of sales generated by VIPs exceeded the 20 percent mark for the first time, reaching 21.9 percent, Lotte said, a 2 percentage point increase from 19.1 percent in 2011.

Lotte classifies VIPs into three different groups -- prestige, crown and ace -- based on the amount of money they spend in a year. In particular, the sales generated by prestige customers who spend more than 60 million won ($51,291) a year, surged 25 percent last year, it added.

Upper class customers at Hyundai Department Store, another major retailer here, also spent 25.1 percent more in the first quarter of the year compared to the same period last year. The figure generated by customers who spend more than 40 million won a year, has been growing since 2013, reflecting that their purchasing power remains strong despite the slowing economy.

They tend to buy luxury accessories, imported designer clothes, food and cosmetics, officials said.

Retailers are competing for VIP customers by offering a wide range of services such as free valet parking, concierge and free drinks at exclusive lounges, they added.

By Cho Chung-un (christory@heraldcorp.com)