On Jan. 4, it was found that sales at big-box retailers in November last year fell 14.1% from the previous month. This is the largest drop since the mandatory store-closure system for big-box retailers was introduced in 2012.
According to the Ministry of Data and Statistics (MODS) on the 4th, the retail sales index for big-box retailers in November last year was 83.0, down 14.1% from the previous month. The retail sales index is a measure that indexes monthly merchandise sales. The average merchandise sales in 2020 equals 100.
The November decline last year was the second largest since statistics began in 2010, after March 2012 (-18.9%). In 2012, the revised Distribution Industry Development Act passed by both parties took effect. Citing a need to revive local commercial districts, the parties included "two mandatory days off per month for big-box retailers" in the revision.
Big-box retailers' sales were particularly weak in November last year partly because the Chuseok holiday fell in October, unlike the usual September. Sales surged in October, leading to a month-over-month decline in November.
Another factor is the steady increase in people shopping for groceries online through platforms such as Coupang. According to the data agency's online shopping trends, online shopping transaction value in November last year rose 10.3% from the previous month. Online shopping transaction value has grown explosively since COVID-19 and has continued to increase month by month recently.
In addition, there was the impact from Homeplus Co., one of the three major big-box retailers along with Emart and Lotte Mart, applying for corporate rehabilitation and suspending operations at some stores. Homeplus closed its Gayang, Jangnim, Ilsan, Woncheon, and Ulsan Buk-gu stores at the end of last year, and said it will also shut its Gyesan, Siheung, Ansan Gojan, Cheonan Sinbang, and Dongchon stores this month.