Department stores to offer sales amid prolonged COVID-19 pandemic
A staff member at Lotte Department Store in Dong-gu, Gwangju, hands over a shopping item to a customer in a car using its drive thru service, March 19. / Yonhap
By Kim Jae-heun
Local department stores will begin their regular sales period from the first week of April for two weeks amid the prolonging COVID-19 pandemic here.
The stores have delayed the sale period for a week this year as part of observing social distancing suggestions in fear of further spread of the virus. However, department stores said they can no longer postpone their events as they have already seen drastic plunges in sales.
Sales at top department store franchises, such as Lotte, Shinsegae and Hyundai, decreased 10 percent in February and a 20 percent in March compared to those of last year. Items are overstocked in stores as fewer people are visiting the franchise outlets.
Spring season items, in particular, will not be popular when weather warms up so departments stores are in hurry to sell them.
Shops are trying to spread out customer visits to prevent crowds shopping at the same time.
Lotte Department Store has launched its “ON:tact” campaign via its mobile platform that will give away 50,000 won e-coupons to customers through a referral program between April 3 and 30.
The department store will also run a promotion where they will pick from those who posted pictures of their home meals on the company's social media to win food ingredients.
Shinsegae will hold a gold fair event at all of its outlets across the country and offer discounted prices on sports items. Testing of golf drivers and clubs prior to purchase is not permitted.
Hyundai Department Store will not restrict its customers from using discount coupons to weekends only, as it has in the past, so as to avoid a massive influx of shoppers on Saturday and Sunday.
Galleria Department Store has created digital content for its newly opened Gwanggyo outlet on YouTube so customers can check the location of shops they want to visit and avoid wandering around in the store for long periods of time.
Analysts at local securities firms are forecasting a negative outlook for department stores until as late as the end of June but once the pandemic settles down, they are expected to rebound quickly.
“The most important thing is when the new coronavirus will die out here. As soon as Korea overcomes it, the sales of department stores here will rebound faster than that of any other sectors,” said analyst Joo Young-hoon at Eugene Investment.