Retail sales index marks record drop in Q2 amid Homeplus fiasco

The retail sales index at South Korea's discount stores plummeted to a record low in the second quarter, with a staggering 9.4% decline from the same period in 2025, according to government figures released on August 9. This sharp drop, the steepest since 2010 data collection began, has been attributed to the closure of numerous Homeplus stores, a major player in the discount retail sector.

The Ministry of Data and Statistics reported a paltry 77.8 points for the April-June quarter, a dramatic fall from the previous quarter. Over 37 of Homeplus' 104 physical locations were shuttered due to financial strain and operational challenges. The Seoul Bankruptcy Court had previously terminated rehabilitation proceedings for the struggling retailer in early July, but the outlet closures persisted.

In a twist, Homeplus swiftly reinstated operations at 67 of its remaining stores after the court reversed its decision on July 13, after Meritz Financial Group pledged the required funds.