Results of efforts to boost domestic demand, department stores and convenience stores 1report strong quarterly performance
Since the launch of the Lee Jae-myung administration, 1domestic-demand revitalization policies have continued, improving the performance of retailers such as department stores and convenience stores. However, uncertainty over raw-material supplies and inflationary pressure remain due to the war in the Middle East.
Since the launch of the Lee Jae-myung administration, 1it has promoted “people’s livelihood recovery” and “domestic-demand revitalization” as its policy priorities. The distribution and platform industries expressed optimism. Some of the industry’s expectations have been confirmed in their results.
However, the fallout from the war in the Middle East is acting as a variable. The industry continues to weather pressure to raise prices due to uncertainty over raw-material supplies while facing the government’s pressure to stabilize prices. Policy support has played some role in the recovery in consumption.
This year’s 1quarter department store 3companies recorded record-high sales. Lotte Department Store posted 8,723billion won, while Shinsegae Department Store posted 7,409billion won in sales. The industry believes that the increase in foreign tourists affected the results.
Hyundai Department Store recorded sales of 6,325 hundred million won. Sales and operating profit at major food companies both increased. Cosmetics ODM companies also posted strong results.
GS25 Retail, which operates 23.8 percent year on year to 213 hundred million won. The improvement in performance across the convenience-store industry continued. BGF Retail, which operates CU, posted operating profit of 381 hundred million won, up 68.6 percent year on year.
Korea Seven, which operates Seven Eleven, also substantially reduced its operating loss. The increase in foreign tourists also affected performance. The number of foreign tourists who visited South Korea last year reached a record high of 1,894 ten thousand.
Olive Young, Daiso, and Musinsa also rewrote their sales records. Industry sources say that consumption-recovery coupons and high-price-impact relief payments issued to stimulate consumption contributed to the recovery in consumer sentiment. Prices of sugar, flour, and starch-based sugar products were lowered after collusion was uncovered.
Sources: 뉴시스 경제
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