The retail industry is focusing on reigniting the fire for the year-end special season. December is the busiest time for retailers, but consumer sentiment has been dampened due to the December 3 martial law situation. With the passing of the impeachment motion against President Yoon Suk-yeol in the National Assembly, the retail industry expects consumer sentiment to partially revive and aims to concentrate on large-scale marketing.
According to the industry on the 16th, Shinsegae, Lotte, and Hyundai Department Stores have decorated their offline spaces for Christmas and are working on attracting customers. The department store industry desperately needs a rebound from Christmas and the year-end special season. The Ministry of Trade, Industry and Energy reported that department store sales from January to October this year reached 25.4 trillion won, falling short of the convenience store sales of 25.8 trillion won. The department store sector aims to attract customers by decorating their interior and exterior to create a Christmas atmosphere, ensuring they become popular spots on social networking services (SNS).
Shinsegae Department Store has been promoting its year-end campaign 'Hello New Santa' since last month, featuring girl group aespa's Karina. On the 20th, a branded film starring Karina will be unveiled at Shinsegae Square. The direction of the film is led by Shin Woo-seok, head of the film and advertising studio Dolphin Kidnappers, known for directing music videos for NewJeans' representative songs 'Ditto' and 'ETA.' The goal is to captivate not only domestic customers but also tourists visiting Korea.
Lotte Department Store is holding the 'Lotte Christmas Market' at the lawn square of Lotte World Mall in Jamsil. They set up experiential content like carousels, which has turned it into a popular spot attracting more than 10,000 visitors on average daily. Until the 17th, an event will take place at a total of 15 stores, including the main store and Jamsil branch, where Santa from Finland will deliver gifts to children and take photos.
Hyundai Department Store is showcasing Christmas-themed displays across 15 stores, including The Hyundai Seoul and Apgujeong main store, and is enjoying the effects of attracting visitors. The story involves the Christmas character of Hyundai Department Store, baby bear Harry, who embarks on a hot air balloon adventure to find the best show at a moving grand theater. The Hyundai Seoul has been accepting reservations for entry at a capacity of 100 people per hour, and the fourth reservation period (for entry from the 16th to the 31st) was fully booked with 40,000 individuals at the start. It is also said that on-site reservations can only be made by visiting early in the morning.
E-commerce companies are holding various discount events. SSG.com is running a 'Shopping Express' event until the 20th, offering up to 90% off on electronics, living goods, fashion, and beauty products. Targeting Christmas gift demand, they are offering discounts on more than 400 official brand products by up to 90%. Discounts on toys for Christmas gifts are also available for customers with young children. Coupang is hosting a 'Toy Festa' event through the 25th, offering discounts of up to 80% on over 2,000 popular products. Basic necessities will see discounts of up to 50%.
An industry official noted, "People's attention has been focused on politics, which has weakened consumer stimulation. The year-end is a time when gift purchases increase and consumption rises. I expect that as consumer outdoor activities increase, sales will also rise further."
Major large discount stores have begun pre-reserving gift sets for the Lunar New Year early. E-Mart is offering a discount of up to 50% for gift set purchases made with promotional cards until January 15 of next year. Lotte Mart has introduced over 800 items, including practical and premium gift sets. Due to rising dining prices increasing the demand for home-cooked meals, the quantity of ready-to-eat and seasoned food gift sets has increased by about 20% compared to last year’s Lunar New Year.
Small business associations have appealed for the resumption of canceled meetings to aid economic recovery. According to data from Korea Credit Data, credit card sales at restaurants in small business establishments nationwide decreased by 9% from the previous year during the period from the 2nd to 9th. This decline is interpreted as a result of the martial law situation. Korea Credit Data explained, "Considering the average profit margin in the food service industry is around 15%, a 10% drop in sales results in more than a 60% drop in profit."
According to a report from the Small Business Federation's urgent survey on the economic outlook for small businesses after the December 3 martial law situation, 88.4% of the 1,630 general small business owners engaged in food service, retail, and personal services reported that their sales decreased after the martial law situation. The Small Business Federation stated, "Due to cancellations of reservations and consumer contraction, the year-end special season is not even on the table, and small businesses are being driven to the brink of extreme hardship. As the situation has changed, we earnestly urge the public to safely visit small business stores that brightly illuminate the streets."