The proportion of online sales in the distribution industry has surpassed the offline sales of large supermarkets and department stores for two consecutive years. It was found that online sales outpaced offline distribution sales even without the performance of major online distribution channels TMON and WEMAKEPRICE.
According to the '2024 annual sales trends of major distribution companies' released by the Ministry of Trade, Industry and Energy on the 23rd, the sales of major distribution companies last year recorded an 8.2% increase compared to the previous year, reaching 179.1 trillion won.
Of this, online distribution grew by 15% compared to the previous year, accounting for 50.6% of total distribution sales. The sales proportion of offline distribution, which had a relatively lower growth rate of 2.0% compared to online, was recorded at 49.4%.
This statistic was compiled excluding TMON and WEMAKEPRICE, which experienced unpaid payment issues last July. In the 2023 statistics, which included these companies, the distribution ratio between online and offline was recorded at 50.5% to 49.5%. Comparing the online and offline distribution sales ratios in 2023, excluding WEMAKEPRICE, shows that offline had the advantage at 47.3% to 52.7%.
An official from the Ministry noted, 'Consumer trends are shifting from offline to online,' and explained, 'While online is experiencing significant growth every year in sectors like food and services, offline has shown continuous struggle in sales for categories such as clothing due to abnormal weather conditions.'
Online distribution sales have been showing steep growth year after year. From 2020 to last year, the annual growth rates were 25.4%, 21.6%, 8.6%, 5.2%, and 15.0%. During the COVID-19 pandemic from 2020 to 2021, growth rates exceeded 20%.
During the same period, the growth rates for offline sector sales were -3.6%, 7.5%, 8.9%, 3.7%, and 2.0%, which were relatively sluggish.
In the offline distribution sector, significant growth is observed in corporations known as super supermarkets (SSM) and convenience stores. Sales for SSM and convenience stores increased by 4.6% and 4.3%, respectively, surpassing the growth rates of department stores (1.4%) and large supermarkets (-0.8%). However, the proportion of total sales accounted for by all four offline distribution sales sectors decreased.
The Ministry's sales trend survey of distribution companies aims to understand consumer trends by investigating and analyzing the monthly sales figures of major online and offline distribution companies. This differs in population and items from the Statistical Office's 'Service Industry Trend Survey' or 'Online Shopping Trend Survey.'
The surveyed distribution companies consist of 13 offline distribution companies and 10 online distribution companies, totaling 23 corporations.
The offline distribution companies included three department stores and large supermarkets each and four SSMs. The online distribution companies are Gmarket Global (Gmarket, Auction), 11st, Interpark, Coupang, SSG (Emart, Shinsegae), AK Mall, Homeplus, Galleria Mall, Lotte Mart, and Lotte On, totaling 10.