Lotte Department Store (Image courtesy of Lotte Depatment Store)
SEOUL, Aug. 19 (Korea Bizwire) – As South Korean department stores struggle with sluggish consumer spending due to high inflation, sports merchandise sections have become an unexpected source of growth.
According to reports from the country’s three major department store chains on August 18, sales in their sports categories increased by approximately 10% in the first half of this year compared to the same period last year, significantly outpacing overall department store sales growth.
Lotte Department Store reported a 10% increase in sports sales for both the first and second quarters of 2024.
This growth stands in stark contrast to the company’s overall sales growth, which was limited to 1.4% in the first quarter and 0.7% in the second quarter.
The monthly sales growth rate for sports merchandise at Lotte dipped to 5% last month but surged to 20% in the first 12 days of August.
Shinsegae Department Store also saw impressive growth in its sports category, with sales increasing by 11.6% and 11.9% in the first and second quarters, respectively.
These figures far exceed the company’s overall sales growth of 7% and 2.1% for the same periods.
Notably, sports sales even outperformed the traditionally strong luxury goods sector, which saw growth of 10.1% in the first quarter and 7.8% in the second quarter.
Lotte Department Store recently reopened its sports and leisure section at its flagship store in Seoul. (Image courtesy of Lotte Department Store)
Hyundai Department Store reported similar trends, with sports sales growing by 10.4% and 8.8% in the first and second quarters, respectively – nearly triple the company’s overall sales growth of 3.6% and 3% for those periods.
Industry analysts attribute this strong performance to emerging fashion trends such as “blokecore” and “gorpcore,” which have popularized the use of sports uniforms and outdoor apparel as everyday wear.
Additionally, a growing interest in activities like running, tennis, and hiking has contributed to the increased demand for sports-related products.
The popularity of limited-edition items from brands like New Balance, Asics, and On has also fueled sales, with some products generating fan-like enthusiasm among consumers.
In response to this trend, department stores are expanding their sports sections, introducing new brands, and renovating existing spaces.
Lotte Department Store recently reopened its sports and leisure section at its flagship store in Seoul, featuring new specialty shops like SOW, which offers hard-to-find popular sneakers.
On the reopening day, hundreds of customers lined up to purchase sought-after items such as Asics Gel-Kayano and Superblast running shoes, as well as products from New Balance, Salomon, and Arc’teryx.
Shinsegae Department Store is focusing on expanding its “mega shops” for popular sports brands. New Balance mega shops have opened in several locations, with Nike mega shops planned for later this year.
The company has also introduced Wilson stores across its locations to capitalize on the growing tennis trend.
Hyundai Department Store has seen similar success with its sports offerings, noting that dedicated sports enthusiasts are willing to invest heavily in their preferred equipment and apparel.
Ashley Song (ashley@koreabizwire.com)
