Image source: Korea Chamber of Commerce and Industry

Online Shopping Growth Rate Outpaces Large Marts by 10 Times in Korea

The domestic retail market in Korea has witnessed a significant shift over the past decade, with online shopping and TV home shopping growing at a rate 10 times faster than large marts.

According to an analysis by the Korea Chamber of Commerce and Industry, the domestic retail market size reached 509.5 trillion won last year, marking a 33.3% increase from 2014. The data, sourced from Statistics Korea, highlights the changing landscape of the retail industry.

The non-store retail sector, comprising online shopping and TV home shopping, demonstrated the highest growth rate, with an annual average of 12.6% over the past 10 years. Convenience stores also led the market growth, with a 10.4% annual average growth rate.

In contrast, supermarkets and hypermarkets experienced relatively sluggish growth, with average annual rates of 1.5% and 1.2%, respectively, over the past decade. This falls short of the overall retail market’s average annual growth rate of 3.2%.

The Korea Chamber of Commerce and Industry attributes the growth disparity to the accelerating transition to a digital economy, which has bolstered non-store retail and convenience stores. Meanwhile, large-scale marts have been impacted by factors such as the rise of single-person households and business regulations.