South Korea's retail sales retreat

Seoul, July 19 (IANS) Sales at South Korea's major discount outlets and department stores retreated last month due to weak demand for groceries and clothes, a government report showed Thursday.

Total sales at the country's three leading discount chains, including E-Mart, Lotte Mart and Homeplus, tumbled 7.2 percent in June from a year earlier, compared with a 5.7 percent on-year contraction tallied in the previous month, according to the Ministry of Knowledge Economy.

The contraction was attributed to weak demand for foodstuffs stemming from price hikes in farm goods and fishery products. Mandatory closure of stores caused less business days, contributing to less revenue by discount outlets, reported Xinhua.

Grocery sales, which account for more than half of sales by the key discount chains, tumbled 6.7 percent on-year in June, and demand for consumer electronics and clothing dropped 14.4 percent and 12.4 percent, respectively.

Sales of daily household goods and miscellaneous products declined 4.4 percent and 10.9 percent, respectively, over the cited period, with sales of sports-related items falling 0.5 percent.