SALES INCREASE FROM ‘KOREA SALE FESTA’

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A major discount event called the Korea Sale Festa, similar to America's Black Friday, kicked off early this month. Despite concerns of the pandemic, there's encouraging news that sales are sharply up at both off- and online events, with the Festa still under way. Can this be seen as a sign of recovering consumption? Take a look.

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​A record number of 17-hundred businesses took part in this year's Korea Sale Festa. In just 1 week, off- and online credit card sales alone surpassed 17 trillion won. The figure is up 8.4% from the same period last year before the COVID-19 pandemic broke out. The government is taking note of the uptick in offline sales. Sales at the top three retail supermarket chains jumped 9.3% on-year while department store sales also went up 11%. This may be a signal that consumer spending which has been suppressed due to the outbreak is finally reviving.

[Soundbite] KIM HO-SEONG(MINISTRY OF TRADE, INDUSTRY & ENERGY) : "The COVID-19 resurgence in August dampened consumer sentiment but the Festa has led to a 10% on-year sales increase."

Sales increased across the board including automobiles and clothing. Apparel sales have more than doubled, providing a relief to companies struggling with high inventory. The issuance of local currencies in far greater volumes than last year also contributed to increased sales. Traditional markets are also bouncing back. Sales events involving gift certificate giveaways quickly wrapped up.

[Soundbite] JEON YONG-GYUN(DAELIM MARKET VENDORS ASSOCIATION) : "Increased customer numbers rejuvenated the market. The gift certificate giveaway ended faster than expected."

The government and industry officials are preparing for more discount events for the year, in order to keep the spending recovery trend going. But quarantine will still be key, as crowded shopping areas run the risk of coming into close contact with others.