Retail sales in South Korea declined for the month of May, remaining less than what the market had initially expected, backing the policymakers' concerns over consumption softening in Asia's fourth-largest economy.
Sales at department store chains run by Hyundai Department Store, Lotte Shopping and Shinsegae Co fell 2.7 percent from a year ago, snapping two months of gains and strongly undershot April's 4.3 percent rise in annual terms data released by the Ministry of Trade showed Wednesday. Preliminary data had shown a 1.5 percent rise.
Children's clothes and sports goods had led the fall in department store sales, dropping 7.8 percent in May from a year earlier on changing trends, the trade ministry said. It added that fewer public holidays in May this year compared to 2015 had also taken a bite out of profits. During the same period, discount store sales in May declined 6.3 percent, the same trade ministry data showed.
Sports-related products also fell by 16.4 percent y/y. The ministry blamed fewer holidays and worsened air quality from last year that has led to fewer South Koreans spending time outdoors. May discount store sales were worse than a 5.5 percent fall initially estimated by the finance ministry and compared unfavorably to a 1.7 percent gain in April.
Meanwhile, the data arrived moments after the Bank of Korea’s monetary policy meeting minutes showed policymakers’ concerns over slowing consumption, before slashing interest rate to a record low of 1.25 percent by a majority vote.