The retail distribution business outlook index failed to maintain the brief momentum that rose above the baseline for the first time in four years in the third quarter and fell in the fourth quarter.
On the 8th, the Korea Chamber of Commerce and Industry surveyed 500 retail and distribution companies on the Retail Business Survey Index (RBSI) and said it fell from 102 in the 3rd to 87 in the 4th.
The RBSI indexes distribution corporations' assessments and outlook for business conditions and shows how the economy feels to corporations. A reading of 100 or above means "more corporations view next quarter's economy more positively than the previous quarter," and below 100 means the opposite.
By business type, only department stores (103) were above the baseline, while online shopping (87), supermarkets (83), convenience stores (83), and hypermarkets (81) were all below the baseline.
Department stores (103) were expected to continue a positive trend as year-end demand and the asset effect from the recent stock market rebound stimulate consumption of high-end product categories. In contrast, online shopping (87) fell sharply compared with just one quarter earlier (105), as negative outlooks emerged despite the year-end season due to intensifying industry competition and low-price offensives by China-based platforms.
Supermarkets (83) saw intensified price competition due to the spread of online grocery shopping, and convenience stores (83) posted the steepest drop from the previous quarter (108) amid reduced winter foot traffic, excessive competition, and labor cost burdens. Hypermarkets (81) continued to stagnate. In addition to fierce price competition with online channels and supermarkets, being excluded from eligible outlets for consumer coupons was cited as a drag.