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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] In November 2025, South Korea’s large-scale retailers recorded their steepest sales decline in 13 years and 8 months, according to official statistics.
Data from the National Statistical Office’s National Data Portal shows that the seasonally adjusted retail sales index for large retailers (base year 2020 = 100) fell to 83.0, down 14.1% from the previous month. The index measures monthly retail sales relative to the 2020 monthly average and serves as an indicator of consumer spending trends.
This marks the largest monthly decline since March 2012 (-18.9%), the highest since the data series began in 2010. At that time, the drop was attributed to government policies restricting large retailers’ weekend operations to support local businesses.
Analysts attribute November 2025’s decline largely to a base effect from the sales boost during the October Chuseok holiday. The ongoing shift toward online grocery shopping, led by platforms like Coupang, also contributed. According to the National Statistical Office’s online shopping report, November online shopping transactions rose 6.8% year-on-year to 24.16 trillion won, the largest monthly figure since data collection began in 2017. Food and beverage sales in particular increased 10.1%, directly impacting large-scale retail outlets.
Additionally, the temporary closure of Homeplus stores amid the company’s corporate restructuring affected overall retail sales. Homeplus had initially planned to close 15 stores in 2025 but postponed the decision due to political pressure. By year-end, however, locations in Gayang, Jangrim, Ilsan, Woncheon, and Ulsan Buk-gu were shut, with further closures planned in Geasan, Siheung, Ansan Gojan, Cheonan Sinbang, and Dongchon.
A recent survey by the Korea Federation of SMEs found that 7.8% of small businesses operating in large retail stores were negatively affected by store closures or distribution downsizing, and 37.5% reported a year-on-year decline in sales.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
