SOUTH KOREA. Duty-free retail sales nationwide (excluding inflight retail) declined -4.4% month-on-month in June to KRW1,199,565,739,843 (US$865.5 million) according to newly released Korea Duty Free Association figures.
The number of shoppers fell -2.8% month-on-month to 2,363,328.
Sales to foreigners fell -3.8% month-on-month to KRW947,591,026,896 (US$683.6 million) on a customer base that slipped only marginally by almost -0.5% to 814,090.
Downtown duty-free sales, so important historically in terms of the Chinese business, fell -4.8% to KRW957,656,458,802 (US$690.9 million). Airport sales declined -2.4% to KRS188,150,337,272 (US$135.7 million).
“As predicted, the daigou business is slowing down and even Korean sales are also stagnating as discounts and promotions are decreasing due to the retailers’ contingent management measures taken to overcome the current sluggish Korean duty-free market,” a senior Korean travel retail executive told The Moodie Davitt Report.
“After Lotte announced its contingency plan to reduce employment and costs, other Korean duty-free retailers seem to be preparing their own plans to deal with the current difficult situation. I guess for the time being the retailers will focus more on austerity than on expansion and competition.”
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