What: Department store sales in Korea surged during the Chuseok holidays, driven by cold, rainy weather and a strong return of Chinese tourists.

Why it is important: The development highlights the effectiveness of experiential and targeted retail strategies in adapting to volatile market conditions and changing consumer preferences.

Korean department stores experienced a remarkable surge in sales and foot traffic during the Chuseok holidays, with Lotte, Shinsegae, and Hyundai all reporting daily sales increases of over 25% compared to the previous year. This growth was largely attributed to an unusually long holiday break, colder and wetter weather, and the return of Chinese tour groups following the resumption of visa-free entry. Lotte Department Store, in particular, saw a 35% rise in average daily sales and a 40% jump in foreign customer sales, with K-fashion and luxury categories performing exceptionally well. The shift in consumer behaviour, with more people choosing to spend holidays indoors, led to a pronounced boost in fashion sales, especially outerwear. In contrast, big-box retailers such as Emart and Lotte Mart faced declines in sales, as demand for food and daily necessities was spread out over the extended holiday period. Department stores capitalised on these trends by launching targeted post-holiday campaigns and seasonal promotions, reinforcing their position as destinations for both leisure and shopping.

IADS Notes: In October 2025, Lotte’s foreign sales rose 40% during the holidays, driven by Chinese tourists and K-fashion (ChosunBiz, Oct. 2025). July 2025’s “mallcation” trend confirmed that extreme weather boosts department store traffic and sales (Inside Retail, Jul. 2025). January 2025 highlighted the industry’s transformation toward entertainment-focused environments amid stagnating domestic consumption (Maeil Business Newspaper, Jan. 2025). September 2025 emphasised the importance of experiential retail and technology in attracting tourists (Inside Retail, Sep. 2025), and August 2025 demonstrated that profit growth and customer engagement are key to competitiveness (Korea JoongAng Daily, Aug. 2025).

Korean department store sales soar over Chuseok holidays