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The gold festival markedly increased the number of visitors to suburban outlets. Long lines lined up in front of luxury stores at Gimpo Hyundai Premium Outlet (left), and Songdo Hyundai Premium Outlet’s place was full of steps. Sales of the two outlet stores during the holiday period increased by more than 20% compared to the same period last year. Reporter Ahn Jae-kwang
At the last second, there was a long line outside the Hyundai Premium Outlet Gucci store in Gimpo, Gyeonggi. People gathered for the golden party. It took about 40 minutes to enter the store. “It seems like most people this year,” said a Gucci store employee. The situation was similar for Burberry and Ferragamo next door. 30-40 people lined up in front of the store.
Retail department stores, which completely ruined the business this spring due to the spread of the new coronavirus infection (Corona 19), enjoyed the biggest specialty this year. During the golden holiday period, major point-of-sale sales, such as Lotte Hyundai, increased from 20% to 60% or more compared to the last May holiday period. According to the analysis, “vengeance consumption” (a phenomenon in which consumer demand suppressed by Corona 19 erupts immediately) and demand for the family month influenced sales growth.
○ 20% increase in sales from Lotte and Hyundai outlets
It was not just a luxury store. People were also packed with semi-luxury brands like Theory DKNY Time. Most of the discounted products above 50% were out of stock. “Most of the heavily discounted products were sold early in the holidays,” the seller explained. The venue of the event was Nantongtong. There were many buyers who felt heat even though they turned on the large air conditioner.
With the expansion of Corona 19, department stores, outlets and large markets completely ruined the business this spring. They waited for Corona 19 to fade away. Then we had a golden vacation. The timing was good. The number of confirmed people decreased to about 10 people per day, and the good weather was good for the activity. People tired of shopping contactless (non-face-to-face) shopping “went out to the store and started” contact (face-to-face) shopping. “
The suburban outlets were especially crowded. Lotte Premium Outlet and Hyundai Premium Outlet sales during these holidays were around 20%, respectively. This figure compares the four-day sales from 30 to 3 this month with the holidays from 3 to 6 May last year. During this period, Gimpo Hyundai Premium Outlets sales growth reached 61.8%.
These outlets are outside the city center. It is a structure in which stores line up in a street-shaped space. It is different from a covered mall or a department store with a closed store. The reason for the large number of outlet visitors was that Corona19 was perceived to be at relatively low risk.
It was also characterized by the large number of family visits with children. Children who stayed home due to online school started playing at outlets. Children’s cafes in shops and department stores were full of children. Paju Lotte Premium Outlet held the Jurassic Dinosaur Exhibition during the Christmas season to attract family visitors.
On the other hand, department stores, which are located in the city center, have a relatively slow recovery in sales. Sales at Lotte Department Store and Hyundai Department Store decreased by 1 ~ 2%. Even closed shopping malls have not recovered to their normal level. At Starfield Hanam and Goyang stores, visitors dropped about 15% from last year’s vacation. The Starfield COEX shopping center in Samseong-dong, Seoul also received around 30% fewer visitors.
○ Concentrate consumption on luxury goods and appliances.
The products that showed the most interest to people who went shopping during the Christmas season were high-end luxury goods and household appliances. At Lotte Premium Outlets, sales increased 35% for luxury goods and 39% for consumer electronics. Shinsegae department stores also experienced a 22% increase in sales of luxury goods during the holiday season. Sales of living goods, including household appliances, also increased 21%. This trend was also confirmed in department stores such as Lotte Hyundai. E-mart, which mainly sells groceries, also reported that sales of large appliances like refrigerators and washing machines increased 25%. Sales of digital appliances, such as laptops and tablets, also increased by 12%.
Distribution experts analyzed that retaliatory consumption led to the sale of luxury items and appliances. A distribution industry official explained: “The area where postponed consumption is exploding immediately due to Corona 19 is luxury and home appliances.” Luxury goods and appliances are expensive, making online shopping less active. The increase in home appliance sales is also due to the sudden rise in temperature. An E-Mart official said: “In the past few days, many seasonal appliances have been sold, such as air conditioners and fans.”
By Ahn Jae-kwang, staff reporter [email protected]
