South Korea’s Retail Sector Sees 9.2% Growth Amid Rising Online Sales
In a marked turnaround, South Korea’s retail industry experienced a remarkable 9.2% year-on-year growth in March 2025, driven by a surge in online shopping. While brick-and-mortar stores faced challenges, the digital marketplace thrived, particularly in food and essential services.
According to the latest data from the Ministry of Trade, Industry, and Energy (MOTIE), online sales soared by an impressive 19.0%. This shift highlights changing consumer patterns, as shoppers increasingly turn to e-commerce for their purchasing needs. In contrast, traditional offline sales reported a slight decline of 0.2%.
Despite the overall positive growth, not all retail segments fared well. Both hypermarkets and department stores recorded declines, with drops of 0.2% and 2.1%, respectively. Categories like fashion and home appliances were particularly hard-hit.
Amid the fluctuating landscape, convenience stores and supermarkets bucked the trend with notable gains. Convenience store sales increased by 1.4%, while super supermarkets enjoyed a robust growth of 3.6%, driven by local shopping preferences that continue to dominate the market.
Online sales significantly benefited from the rising demand for food products, which climbed by 19.4%. Additionally, services experienced a staggering 78.3% boost, largely due to an increased reliance on food delivery and online orders. However, fashion and sports categories struggled, witnessing declines of 4.7% and 10.1%, respectively.
Notably, back-to-school shopping stimulated demand for home appliances and consumer electronics, which rose by 7.8%. The cosmetics sector also saw a growth of 7.5%, thanks to ongoing online sales momentum.
The retail landscape in South Korea is evolving rapidly, with online sales playing a pivotal role in shaping consumer trends. As digital shopping continues to expand, it presents significant opportunities and challenges for retailers, necessitating adaptations to meet the shifting preferences of consumers.
As the retail sector navigates these changes, the potential for sustained growth remains promising, particularly for brands that embrace innovation and enhance their online presence.
