SOUTH KOREA. Duty free retail sales nationwide (excluding inflight retail) reached KRW1,329,247,041,579 (US$1.02 billion) in October, up just over +0.14% over September.
Customer numbers grew +2.7% to 2,157,243, indicating a softening of spend month-on-month. September, though, benefitted from the Chuseok (Korean Thanksgiving) holidays (28-30 September). The leading travel retailers hosted big sales campaign to coincide with the festivities.
Sales to foreigners rose +1.2% over September to KRW1,093,709,844,500 (US$837 million), well behind a +6.7% increase in customers to 680,920. Sales to Koreans dropped -4.6% to KRW235,537,197,079(US$180.2 million) despite a +1.9% month-on-month increase in customer numbers to 1,476,323.
“Overall sales were sluggish due to the recession of China’s economy as well as in Korea,” an experienced Korean travel retail executive told The Moodie Davitt Report. “The daigou restrictions are also pressuring the wholesale business.
“Sales to Koreans in September were buoyed by the Korean Thanksgiving holidays while Incheon airport International Airport sales are slowly recovering as the new concessions are opening stores step by step.”
Downtown sales dominated the market, representing 82.8% of sales. Foreign shoppers generated 92.8% of spending in this channel. ✈
