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S.Korea's retail sales retreat in August
Last Updated(Beijing Time):2012-09-17 09:31

Sales at South Korea's major discount outlets and department stores retreated last month due to slowing consumption and a delayed Chuseok holiday, a government report showed Monday.

Total sales at the country's three leading discount chains, including E-Mart, Lotte Mart and Homeplus, declined 3.3 percent in August from a year earlier, according to the Ministry of Knowledge Economy.

The August figure kept its downward trend for five straight months due to weak consumer demand stemming from the overall economic slowdown.

The delayed Chuseok holiday contributed to the August reduction. South Korea's Thanksgiving Day fell on Sept. 30 this year, later than Sept. 12 last year, decreasing purchase of foodstuffs.

Mandatory closure of stores caused less business days, contributing to discount outlets' less revenue, the ministry said.

Grocery sales, which account for more than half of sales of the key discount chains, reduced 3.7 percent on-year in August, and demand for clothing and daily household goods dropped 4.9 percent and 5.2 percent respectively.

Sales of miscellaneous products and sport-related items fell 1. 6 percent and 0.2 percent each on-year in August, but sales of consumer electronics rose 0.2 percent last month.

Meanwhile, combined sales at the three major department stores, including Lotte, Shinsegae and Hyundai, tumbled 6.9 percent on- year in August, compared with a 1.3 percent decline in July, according to the ministry.

The August contraction came as high-priced clothing sales decreased amid weakening consumer sentiment. The delayed Chuseok holiday reduced demand for foodstuffs and miscellaneous products, the ministry said.

Sales of foodstuffs and miscellaneous products plunged 9.7 percent and 6.7 percent each on-year in August, and luxury goods sales declined 2.2 percent last month.

Demand for women's suits and women's casuals dropped 13.0 percent and 7.8 percent respectively in August from a year before, with sales of men's clothing tumbling 12.6 percent. Those for youth sporting goods and daily household products declined 4.3 percent and 7.9 percent respectively.

Source:Xinhua 
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