Shinsegae Department Store recorded total sales of 650.5 billion won in June, a 14.4% increase compared to the same period last year. The growth was driven by sustained foreign visitor spending and increased consumption across luxury goods, fashion, home appliances, and other categories. The company's second-quarter sales growth rate of 14.9% surpassed the first quarter's 13.5%, reflecting strengthened momentum in Korea's retail sector amid a rising domestic stock market.
Shinsegae Q2 Sales Growth Outpaces Q1 Performance
Shinsegae Department Store's total sales growth accelerated in the second quarter. The first quarter averaged 13.5% growth, while April recorded 13.9%, May reached 16.5%, and June posted 14.4%, bringing the second-quarter average to 14.9%. Total sales figures represent combined results from Shinsegae, Gwangju, Daegu, and Daejeon department stores. Total sales aggregate customer purchase amounts from direct purchases and consignment transactions, a metric larger than accounting revenue which excludes supplier portions from consignment deals.
Foreign Visitors and Diversified Consumption Drive June Sales
A Shinsegae representative stated that growth expanded beyond luxury goods to include fashion, watches, and jewelry. Home appliance consumption increased due to Samsung's promotional event. Samsung Electronics conducted a "Thank You Festival" from June 8 to July 5, offering up to 20% cashback in digital gift certificates. The representative noted that consumption increased across various categories rather than remaining concentrated in luxury goods. May's higher growth rate of 16.5% reflected overlapping holidays, as Japan's Golden Week (April 29 to May 6) and China's Labor Day holiday (May 1 to 5) brought increased foreign visitors to Korea.
KOSPI Wealth Effect Supports Retail Sales Growth
The company attributed part of the sales increase to wealth effects from Korea's rising stock market. The KOSPI index peaked at 9,114.55 on June 22 before declining 20%, but retained a 73.0% gain for the year. A Shinsegae representative stated that high sales growth continued into July. Shinsegae's stock price closed at 606,000 won on July 9, down 3.04% from the previous session.
![Shinsegae Department Store]()
Shinsegae Department Store [Source: Yonhap News file photo]
FAQ
What was Shinsegae Department Store's total sales in June?
Shinsegae Department Store recorded total sales of 650.5 billion won in June, representing a 14.4% increase compared to the same period last year.
Why did Shinsegae's sales grow in June?
The growth was driven by sustained foreign visitor spending, diversified consumption across luxury goods, fashion, jewelry, and home appliances, Samsung's promotional event offering up to 20% cashback, and wealth effects from Korea's rising KOSPI stock index.
How did Shinsegae's Q2 sales growth compare to Q1?
Shinsegae's second-quarter average sales growth rate of 14.9% exceeded the first quarter's 13.5%, with monthly rates of 13.9% in April, 16.5% in May, and 14.4% in June.
