Retail in South Korea - Coronavirus (COVID-19) Country Impact

Retail in South Korea - Coronavirus (COVID-19) Country Impact

Summary

The Coronavirus (COVID-19) country report analyses how the pandemic will impact retail spend in South Korea.

The outbreak of coronavirus disease (COVID-19) is set to take a ₩12.4 trillion chunk out of South Korean retail sales in 2020.

Unlike most countries, which are forecast to register negative growth in retail sales in 2020 over 2019, South Korean retail sales are anticipated to grow in 2020, albeit at a significantly slower pace than pre-COVID estimates.

Scope

• South Korean retail sales are forecast to register positive growth in 2020, albeit at a significantly slower pace than pre-COVID estimates. According to the publisher, South Korean retail sales are now forecast to rise by 2.1% in 2020, down from the original 2020 forecast of 5.5%.
• The country’s partial lockdown measures allowed the majority of retailers to remain operational, meaning most could stay afloat during the crisis. Sales of department stores, duty-free stores, and discount stores suffered declines of 40.3%, 65%, and 13.8%, respectively, in March 2020. However, these channels’ falls were offset to some extent by positive growth in supermarkets and online retailers, which grew by 5.5% and 16.9%, respectively, in the same month.
• the publisher expects sales growth to rebound quickly in 2021 and to reach its pre-COVID levels by 2022 as normal buying patterns in the country return. Covid-19 crisis has set the foundation for localized consumption trend in South Korea, meaning customers prefer local supermarkets or convenience stores in their vicinity, rather than going to large shopping malls located far away and are usually crowded.

Reasons to Buy

• Use our revised market forecasts out to 2024 to understand how the South Korean retail market will perform.
• Use our in-depth analysis to review how key retailers have responded to COVID-19.
• Use our data on key consumer shopping and lifestyle habits to see how the population have responded to the impact of COVID-19.