Department stores sales tumble in first quarter
Plagued by growing concerns about warfare in Iraq and the spread of the deadly SARS virus in China and Hong Kong, first quarter sales posted at major department stores were found to have plunged on-year, sources said yesterday.
According to industry sources, Lotte Department Store posted a 0.5 percent of decline in sales for the first-quarter compared to the same time last year. Hyundai Department Store and Shinsegae Department store also reported 3.8 percent and 1.8 percent of drops, respectively.
This is the first time for a major department store to indicate a fall in quarterly sales from a year ago since the last quarter of 1997.
In January, sales at department stores rose 5.8 percent as a buying spree took place in preparation for the holidays. But the combined sales for the first two months at department stores shrunk by 3.0 percent.
Discount retailers that usually showed 10-20 percent of sales growth rates, are expected to post gloomy performances for the first-quarter, which ended Monday.
The sources said such retailers as Shinsegae E-Mart, Samsung Tesco, HomePlus and Lotte Mart all posted low 1-4 percent for growth rates in their sales revenue.
Experts said that the economic slump which began in the second-half of last year due to mounting economic external uncertainties like the war in Iraq are keeping already dim consumer sentiment down further.
Industry watchers said that it would be highly unlikely at this point to expect buying sentiment to recover to a normal range within the first-half of this year.