The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    PHOTOSTrapped along borders

  • 3

    Korea wins gold in League of Legends competition; Faker tops podium

  • 5

    Trailblazing nonagenarian artist honored for redefining Korean fiber art

  • 7

    Pentagon's CWMD strategy document calls N. Korea 'persistent threat'

  • 9

    Builders vie for leadership in modular construction

  • 11

    Are 'finfluencers' helping or harming investment community?

  • 13

    Apple, China met to discuss Beijing's crackdown on western apps: WSJ

  • 15

    Swimmer Kim Woo-min captures 3rd gold in Hangzhou

  • 17

    What to know and what's next for Travis King, the American soldier who ran into North Korea

  • 19

    S. Korea eliminates N. Korea in women's table tennis doubles

  • 2

    BTS' Jungkook to drop 2nd solo single

  • 4

    VIDEOBustling Chuseok: Namsan Hanok Village immerses visitors in Korea's rich traditions

  • 6

    Opposition leader Lee again proposes talks with President Yoon

  • 8

    BTS' Jungkook drops 2nd solo single

  • 10

    Yoon hosts Chuseok luncheon for Korean atomic bomb victims in Hiroshima

  • 12

    Korea fails to be included on FTSE Russell's global bond index

  • 14

    Poll shows 79% of young Koreans agree on need to improve ties with Japan

  • 16

    INTERVIEW'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director

  • 18

    Second release of Fukushima wastewater to start next week

  • 20

    S. Korea cruises past N. Korea in women's basketball

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Sun, October 1, 2023 | 21:58
Companies
Department stores enjoy handsome sales growth in 2nd quarter
Posted : 2022-08-17 16:04
Updated : 2022-08-17 16:13
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link

By Kim Jae-heun

Since the country eased COVID-19 social distancing measures putting limits on private gatherings and multi-use facility operating hours at the end of April, Korea's "big three" local department stores have enjoyed notable sales growth over the past three months, thanks to higher demand for luxury fashion goods and other high-end items. Their outlook for the second half of the year appears to be even brighter as customers are expected to continue "revenge spending," which means making up for missed overseas travel during the last two years by shopping, according to industry analysts.

Lotte Shopping, Shinsegae and Hyundai Department Store have all posted earnings surprises in the second quarter of this year.

Lotte Shopping, the operator of Lotte Department Store, marked operating profit of 74.4 billion won ($56.7 million) between April and June, up by 882.2 percent, year-on-year. Its net profit in the first half of this year turned into a surplus for the first time in three years too.

Lotte Shopping struggled during the earlier phases of the pandemic, but the department store company has put up a good fight since appointing a new CEO to revamp its retail business.

Lotte Department Store's sales and operating profit in the second quarter this year recorded 828.5 billion won and 104.2 billion, respectively, up by 14.9 percent and 68.5 percent, respectively.

"Lotte Shopping will continue to show a strong rebound in its operating profit for the second half of the year, and 2022 will be the first year for the company's annual net profit to make a turnaround," Kyobo Securities researcher Jeong So-yeon said.

Shinsegae and Hyundai Department Store also achieved all-time high business performances in the second half of this year, thanks to increases in sales in various sectors, including sports, domestic fashion and kids.

In particular, Shinsegae Department Store's revenue soared 25.5 percent compared to that of the previous year, reaching 623.5 billion won, and its operating profit skyrocketed 80.6 percent to record 121.1 billion won.

"We have to refurbish our Gyeonggi branch in time for the country's resumption of economic activities, and the new store in Daejeon getting off to a good start has had a huge impact in terms of our performance," a Shinsegae Department Store official said.

Huge jumps of Shinsegae Department Store's sales in women's fashion (up by 34.2 percent), menswear (up by 34.7 percent) and outdoor brands (up by 43.6 percent) have driven the company's offline business growth. The men's and women's fashion categories have high margins compared to that of luxury fashion. Revenue coming from young customers in their 20s and 30s has also increased 38 percent during the period.

"Considering the purchase cycle, Shinsegae Department Store's operating profit will continue to improve in the second half of this year due to strong clothing sales," Korea Investment & Securities researcher Kim Myung-joo said.

Hyundai Department Store is yet to reveal its business performance in the second quarter, but the local securities firm expects the company to show 999.2 billion won in sales and 77.2 billion won of operating profit.

Luxury goods and furniture sales are still big

The high sales growth of luxury goods and furniture has contributed significantly to major department stores' all-time-high figures.

A number of consumers spent substantial cash purchasing expensive designer-label clothing. Furniture is another sector that Lotte Shopping, Shinsegae and Hyundai Department Store have been focusing on. They all have their own furniture brands to prepare for the growth of the local market, which is expect to reach the size of 20 trillion won by 2024.

Shinsegae has Casamia and Hyundai Department Store acquired e-commerce mattress company Zinus in March. Last September, Lotte Shopping took over local interior and furniture brand Hanssem.


Emailjhkim@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
wooribank
LG
Top 10 Stories
1[INTERVIEW] Risk-averse culture is forcing daring creators to flee showbiz INTERVIEWRisk-averse culture is forcing daring creators to flee showbiz
2Koreans adapt to soaring food prices Koreans adapt to soaring food prices
3[PHOTOS] Trapped along borders PHOTOSTrapped along borders
4Education ministry prohibits parents from recording classes Education ministry prohibits parents from recording classes
5[VIDEO] Bustling Chuseok: Namsan Hanok Village immerses visitors in Korea's rich traditions VIDEOBustling Chuseok: Namsan Hanok Village immerses visitors in Korea's rich traditions
6Builders vie for leadership in modular construction Builders vie for leadership in modular construction
7Are 'finfluencers' helping or harming investment community? Are 'finfluencers' helping or harming investment community?
8Value, consumer goods, financial stocks expected to gain momentum after Chuseok holiday Value, consumer goods, financial stocks expected to gain momentum after Chuseok holiday
9[INTERVIEW] ROK-US alliance is win-win partnership: KUSAF chief INTERVIEWROK-US alliance is win-win partnership: KUSAF chief
10Over 30,000 protesters march for climate actions Over 30,000 protesters march for climate actions
Top 5 Entertainment News
1[INTERVIEW] 'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director INTERVIEW'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director
2M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub
3Trailblazing nonagenarian artist honored for redefining Korean fiber art Trailblazing nonagenarian artist honored for redefining Korean fiber art
4[INTERVIEW] With '30 Days,' Kang Ha-neul finds new level of comfort in acting INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting
5Rwandan artists bring diversity to Seoul's art scene Rwandan artists bring diversity to Seoul's art scene
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group