[THE INVESTOR] Sales of major department stores and discount chains in Korea declined in May from a year earlier due to reduced holidays, government data showed on June 29.

The combined sales of three department stores -- Hyundai, Lotte and Shinsegae -- fell 2.7 percent on-year last month, while those of major discount stores E-mart, Lotte Mart and Home Plus fell 6.3 percent, according to the data compiled by the Ministry of Trade, Industry and Energy.

The ministry said people spent less as the number of holidays dropped by two days from a year earlier, although the government designated a temporary holiday on May 6 allowing a five-day break during the first week of May.

There were 11 red-letter days in May this year, including weekends and a temporary holiday, down from 13 days the previous year.

Sales at super supermarkets, mostly run by large retailers, also slid 5.4 percent on-year, the data added.

Sales at convenience stores, in contrast, continued to grow by a large margin, jumping 14.8 percent on-year last month, helped by a rise in cigarette sales and cold beverages.

The latest figure came a day after the government slashed its growth forecast by 0.3 percentage point to 2.8 percent, citing faltering exports and tepid domestic demand, coupled with the British vote to leave the European Union.

(theinvestor@heraldcorp.com)