Online shopping beats in-store sales for first year ever

[Yonhap]

Online platforms accounted for more than half of Korea's total retail sales for the first time last year as technology enables faster deliveries, the Industry Ministry said Tuesday.

The combined sales of 25 major offline and online retailers rose 6.3 percent on year to 177.4 trillion won ($133.35 billion) in 2023, according to data compiled by the ministry.

Sales of offline retailers rose three percent on year, and those of online stores advanced nine percent on year.

Online sellers accounted for 50.5 percent of total sales, overtaking offline retailers for the first time ever.

Internet shopping for daily necessities and services has become commonplace following the Covid-19 pandemic and the subsequent explosion of early morning delivery services and frictionless payment tools.

Of offline retailers, sales from convenience stores jumped 8.1 percent on year in 2023, as more people purchased daily necessities near their homes, and items like packaged food became more popular.

Department store sales grew 2.2 percent on year, and sales of discount chain stores and smaller supermarkets went up 0.5 percent and 3.7 percent, respectively, in 2023.

Department stores accounted for 17.4 percent, or the largest share, of total sales among offline retailers, followed by convenience stores with 16.7 percent and discount chain stores with 12.7 percent.

Retail sales rose 7.5 percent to 15.9 trillion won in December alone.

Offline retailers enjoyed a 4.5 percent sales increase, and online platforms logged a 10.4 percent sales rise last month, the data showed.

Yonhap