Sales at South Korea's large discount stores returned to growth last month for the first time in six months, lifted by spending ahead of the Chuseok holiday.
Combined sales at 26 major retailers rose 7.7% from a year earlier, according to the August retail sales report released by the Ministry of Trade, Industry and Energy on the 23rd. Offline sales increased 5.4% and online sales gained 9.3%.
The gains reflected early purchases of gift sets and other food products, as this year's Chuseok holiday falls in late September, earlier than early October last year. Demand for delivery services and travel products also rose because of the heat wave that began in July and the summer vacation season.
Among offline channels, sales at large discount stores rose 4.5% in a notable rebound. Food sales grew 5.4% and home appliances and toys jumped 17.8% on holiday demand. Declines narrowed in other categories that had been weak, turning overall sales positive for the first time in six months.
All offline formats performed well. Super supermarkets (SSM) rose 5.0%, rebounding for the first time in eight months on demand for holiday gift sets including agricultural, fishery and livestock products, which rose 10.1%. Department stores grew 11.9%, helped by higher food sales from advance holiday gift set sales and continued growth in sales of foreign luxury brands. Convenience stores rose 0.8%, extending their growth as higher spending per purchase offset a drop in customer traffic during the heat wave.
Online retailers posted double-digit growth in food sales, up 12.6%, on advance orders for Chuseok gifts. Services and other items, including food delivery, travel and e-coupons, surged 16.9% amid the hot weather.
By channel, online accounted for the largest share of sales last month at 59.7%, followed by convenience stores at 15.4%, department stores at 13.7%, large discount stores at 9.0% and SSM at 2.2%.
