Department store sales spike on "revenge spending"

[waves-of-light.livejournal.com]

Sales at the nation's department stores set a new 25-year high in February, in an apparent sign of so-called "revenge spending" in the wake of the COVID-19 economic doldrums experienced throughout 2020.

According to data from Statistics Korea, consumer spending at department stores surged by 33.5 percent in February, compared to a year ago, the largest growth since February 1996. The statistics authority started compiling data from 1995.

This is widely seen as a post-lockdown rebound here after the economy contracted 1 percent last year.

Statistics Korea said domestic consumption is showing signs of bouncing back after bottoming out in February 2020 when department store sales declined by 21.2 percent from the year before.

Other data from the Bank of Korea also indicated a similar pattern, raising hopes for an overall economic rebound. The composite consumer sentiment index (CCSI) reached 100.5 in March, up by 3.1 points from the previous month, according to data from the central bank.

This is the first time the figure has topped 100 since January last year before fears of the pandemic started weighing on the economy. The CCSI refers to households' composite outlook in a total of six specific sectors ― such as forecasts for their spending and their economic situation. When the figure surpasses 100, consumers expect their living conditions or incomes to improve.

The reviving consumption sentiment was largely because more people jumped into the spending spree from the beginning of 2021 after being forced to stay indoors amid fears of the virus spread throughout last year.

Sales at Hyundai Department Store surged by 74.1 percent in March 2021 from the previous year on the effect of the consumption recovery and the opening of its new department store, The Hyundai Seoul, in late February.

Statistics Korea also said its sales index for durable goods ― such as cars and electric devices ― surged to 141.5 points as of February. In December 2019 before the coronavirus fears started to weigh on the economy, the figure reached 127.9. The authority explained more people showed interest in purchasing electronic devices or furniture after the COVID-19 pandemic left them spending more time indoors.

But the sales index for semi-durable goods ― such as clothes, shoes and bags ― declined to 98 in February. This was a drop of seven points from December 2019.

Experts said the sales surge at major department stores was obvious "revenge spending" at a time when people are resuming their outdoor activities.

"Department stores do not restrict the number of visitors despite the pandemic, and this is the key reason why their sales soared for the past few months," said Kim Dae-jong, professor of business administration at Sejong University.

Sales of fashion goods have not recovered, as the authorities are still restricting public face-to-face meetings, he added.

"In contrast, consumption of furniture and electronic devices is bouncing back here because the public still prefer to stay indoors amid lingering fears of infection, so they are spending more on appliances," he said.







What about you, Omona? What has been your shopping habits this past year? I've only gone to mall twice to pick up items I purchased online (a new blender and some K-pop albums lol). I miss mall food court food so much.


source: The Korea Times

Comments

[theweebdream.livejournal.com]

I definitely splurged on a few things last year between getting promoted and saving money wfh. Whether I regret it or not...lol

[snowphone.livejournal.com]

i think for the first few months of covid i did a lot of stress spending.

i haven't been to an actual brick and mortar store in aaaaages but i consistently buy cosmetics online throughout the year so that hasn't changed. i will say i'm buying a lot less clothing because with online school.... i basically just wear the clothes i sleep in. all of my pretty clothes are languishing in my closet.....

i've bought a lot of technology stuff for online schooling.

[921227.livejournal.com]

I definitely bought more 'feel good' items at the start of the pandemic (like a lot). I was working from home and spent all my time at home so I bought literally everything online.

[fritterish.livejournal.com]

I bought a lot of stuff during the pandemic that I wouldn’t normally buy—a smartwatch, running shoes and other stuff for exercising. I don’t have a decent workspace at home so I had to buy a work table and chair. Also bought a lot of organisers/cabinets. And pajamas lol

[neongoldtooth.livejournal.com]

i bought a few things but ya girls unemployed rn so she gotta save her coins for her bills.

i think i did a lot of mindless grocery shopping/takeout and made/ate a lot of comfort type foods.

[babyjenkski.livejournal.com]

I bought a lot of stuff online and rewarded myself lots of kpop and Thai BL merchandise 😂 The only time I went to the mall last year was when I needed to buy a new phone. Usually, I just go to the grocery and thats it.

During the lockdown last year, my brothers and I decided it would be nice to have food deliveries from home businesses (homemade burgers, pizzas, cakes etc) to help out our community instead of the usual fastfood chains.

[baekpedaling.livejournal.com]

I've been buying a lot of stuff online and I need to stop. I've only been to the mall twice since 2020 and it was to grab food

[kazu-kumaguro.livejournal.com]

expensive make up and lots of essence oils, then nespresso machine (and lots of capsules, I drink like 2-4 capsules a day on average), also finally work table and chair. I also renovated my room which I wouldn't do (at least right now) if not because of quarantine and the fact that I spend 24/7 in my room.

[thebloomroom.livejournal.com]

i started buying gold jewelry so thats that lol. i was saving money at first...

oh and a shitton of untamed merch LOL its all i have rn for happiness

[peachdrug.livejournal.com]

In exchange of concerts, I’ve been spending more on merch, including (almost) all magazines monsta x have been featured in 💀

The pandemic also happened when I just moved to a new place, so I’ve been slowly buying storage and house appliances online. Definitely been depending more on food deliveries because i have less time to cook now that I’m wfh...

[adenar.livejournal.com]

i work in a supermarket, i didn't really buy any excess stuff. I bought less leisure stuff than I ever would have. But because of everything and how busy i was and how shit i was feeling, i spent way more on food last year than i normally would - so much that i legit managed to barely save any money because i was just completely mentally and physically unable to prepare food at home, i bought everything on premises. and i spent so much on takeaway food.

this year i've been a bit better. but i'm not really interested in going on shopping sprees. I'd love to go out and have some street food or go to food markets, and I'm interested in buying tickets to go to places, but I'm not so much interested in new possessions at the moment.

[modestgoddess79.livejournal.com]

I redecorated my bedroom, sold my old bedroom set, and bought new bedroom furniture. I spent way more money on food delivery. Gained weight so I bought new lounge shorts, pajamas and jeans. I also got some new tops and skirts but I haven’t worn those. I thought about buying a new suit for a job but it was not necessary for an online interview.

[lightframes.livejournal.com]

At first, like last spring I was ordering a lot of things online because I couldn't go out. I mean I still can't go out lol I just stopped ordering as many things. I'm trying to save up more.

[accioanime.livejournal.com]

before 2020 I think I've had stuff delivered to me maybe once a year to buy something I can't find in store.... then 2020 happened and I just order anything I need through amazon prime or costco delivery. Even subscribed to a few meal services like hellofresh (didn't last long, the food isn't up to my taste. I prefer asian food all the time lol). I also discovered grubhub+ so I can get hot meals. Overall, I spent a lot more on food and random amazon gadgets, but I also saved a lot of money for giving up my expensive city apartment and just moving back home since I've been WFH since Feb 2020. I still help out and pay rent but nothing close to my previous rent. Also saved up on gas and buying clothes/shoes because I recycle the same tops for zoom calls lol.

I've calmed down a bit this 2021 and don't order packages as much. I definitely notice I've been going out to eat more often lately since restaurants have opened up. I guess I just miss sitting down at a nice table? I'm also vaccinated so it feels freeing.