SOUTH KOREA. Duty-free sales nationwide (excluding inflight retail) fell -16.08% year-on-year in May (-11.17% month-on-month) to KRW1,052,530,423,979 (US$773,565,174), according to newly released Korea Duty Free Association figures.
This was despite a +5.77% year-on-year increase in monthly customer numbers (+5.84% month-on-month) to 2,571,677.
May sales to foreigners saw a steep -21.43% year-on-year (-17.45% month-on-month) decline (especially in downtown store, as daigou sales sagged) to KRW774,103,734,349 (US$568,992,040).
The decline came despite a healthy +16.97% rise in May customer numbers year-on-year (-0.67% month-on-month) to 956,796.
Sales to Koreans increased during the May holidays, including Children’s Day (5 May), with revenue up +3.51% year-on-year (+12.68% month-on-month) to KRW278,426,689,630 (US$204,661,519). Customer numbers rose +0.09% year-on-year (+10.12% month-on-month) to 1,614,881.
Despite no reported change in foreign customer numbers for downtown during the month, sales dropped sharply (-26.54% year-on-year, -19.35% month-on-month).
Such results appear to confirm a growing trend for Chinese tourists to purchase in domestic market shops rather than duty-free stores, as well as a continued decline in daigou trading. ✈
