Retail sales rise 6.4 pct in July spurred by vacation season spending

South Korean retail sales surged 6.4 percent in July compared to the previous year, according to data released on Wednesday by the Ministry of Trade, Industry and Resources. The robust growth was primarily fueled by heightened demand for delivery services and travel-related products during the summer vacation season. Offline retailers experienced a 3.2 percent increase in sales, with department stores and convenience stores leading the charge. Both categories extended their consecutive month-long gains to 13 months.

Department stores reported an overall sales increase of 17.9 percent, driven by a diverse range of products including imported fashion brands, vacation essentials, and air conditioning products. Convenience store sales also climbed 1.1 percent, despite a decrease in foot traffic, as individual consumer spending rose. Online retail sales exhibited impressive growth, soaring 8.5 percent, with food delivery services and purchases of groceries and home appliances contributing significantly to this surge. In fact, online platforms constituted a substantial 60.8 percent of total retail sales in July.