Hypermarkets and super supermarkets moved in the opposite direction, posting declines of 15.2% and 8.6%, respectively. Credit: Valery Evlakhov / Shutterstock.com.
Online retail accounted for the majority of total sales among South Korea’s major retailers in March.
According to the South Korean Ministry of Trade, Industry and Energy, online platforms represented 60.6% of combined sales among the country’s distributors.
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The figure marks the first time online channels have crossed the 60% threshold since the ministry began its monthly retail survey in June 2016.
The survey covers 11 major online platforms, including Coupang, Interpark, Lotte ON, Naver, and SSG.COM, alongside 15 offline retailers spanning department stores, supermarkets, convenience stores and super supermarkets.
The online share was 58.7% in January, 58.5% in February, and then 60.6% in March.
The segment had previously crossed the 50% mark during a pandemic-driven surge in December 2020, before retreating into the 40% range in 2021 and 2022 and resuming an upward trend from 2023 onwards.
Local publication Korea Bizwire noted the milestone to the entrenchment of online shopping in Korean consumer behaviour, with rapid delivery infrastructure and the expansion of mobile commerce reshaping how households spend.
On a year-on-year basis, online sales grew 8.1% in March, compared with 1.9% growth for offline channels.
Among physical retail formats, department stores held the largest offline share at 15.4%, followed by convenience stores at 13.9%, hypermarkets at 8.1% and super supermarkets at 2.0%.
Department store sales rose 14.7% year-on-year, bolstered by a record 2.06 million overseas visitors during the month.
Hypermarkets and super supermarkets moved in the opposite direction, posting declines of 15.2% and 8.6% respectively.
The pressures bearing down on traditional offline channels have drawn legislative attention.
With online platforms surpassing 60% of distribution sales and hypermarkets and corporate supermarkets facing sustained headwinds, the National Assembly has begun deliberating amendments to the Distribution Industry Development Act, according to local media reports.
The proposed changes would allow large discount stores to conduct early morning deliveries and ease restrictions on late-night operations.
South Korea’s Trade, Industry and Energy Small and Medium Venture Business Committee has separately tabled an amendment specifically permitting the late-night operation of large discount stores.
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