Korean online mall sales lose traction

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(Source: Inside Retail Asia | September 6, 2017)

South Korean online mall sales growth has decelerated as competition grows more
fierce, government data shows.

There was a 3.6 percent increase in the combined revenue of 26 offline and online
retailers to 10.22 trillion won (US$9 billion) in July, according to the Ministry of
Trade, Industry and Energy. This gain marks a deceleration from 7.2, 6.3 and 7.2
percent growth posted in April, May and June respectively.

The slowdown is attributed largely to fewer sales on online open markets such as
eBay and 11st.

Sales at 13 major online shopping malls rose 4.4 percent last month, following
double-digit growth for five straight months since February. Meanwhile, the sales of
the 13 offline retailers, including department stores, discount chains and
convenience stores, rose 3.2 percent on-year on the back of strong performance by
convenience stores.

Convenience stores saw their sales rise 11.1 percent last month, with hypermarket
chains posting 1.7 percent growth and department stores having a 1.3 percent revenue
slide.

 

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