Sales at S. Korean discount stores fall in July

By Lee Joon-seung
SEOUL, Aug. 18 (Yonhap) -- Sales at South Korea's major discount outlets fell
noticeably in July as unfavorable weather conditions hurt consumption of
summer-related products, a government report showed Tuesday.

Total sales at the three leading discount outlets were down 6 percent on-year,
much steeper than the 1.4 percent loss reported for the month before, the
Ministry of Knowledge Economy said.
"The long monsoon rains and lower-than-normal temperatures during the month
caused a dip in sales across the board," said an official.
Sales of sporting goods and clothing, which are usually in high demand, were down
7.5 percent and 12.5 percent, respectively, while below-normal temperatures hurt
sales of electronic goods such as air conditioners and fans.
The report also said that grocery sales, which make up more than 50 percent of
sales at discount outlets, were 4.2 percent lower than the year before.
The ministry, however, said department stores sales were not seriously affected
as shoppers continued to buy luxury and miscellaneous goods.
Sales grew 4 percent on-year in the cited month, higher than the 3.6 percent
increase tallied for June.
Sales of luxury goods moved up 11.8 percent, followed by gains of 10 percent for
miscellaneous goods.
The monthly report, based on sales figures from the Lotte Mart, E-mart and
Homeplus discount stores and the Lotte, Shinsegae and Hyundai department stores,
is a key indicator of Korea's consumer sentiment.
yonngong@yna.co.kr
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