Larger performance bonuses tied to improving semiconductor earnings are showing up in holiday spending. Department stores near Samsung Electronics and SK hynix plants have seen sharp gains in Chuseok gift set sales, with growth in high-end purchases ranking among the highest of any branch nationwide.
Chuseok gift set sales at Lotte Department Store's Dongtan branch rose 35% from a year earlier, according to retail industry figures released on the 23rd. That is more than double the 15% increase recorded across all Lotte Department Store branches over the same period. At Shinsegae Department Store's South City branch in Yongin, Gyeonggi Province, sales during the gift set season from Aug. 14 through Sept. 20 climbed 30% year-on-year, twice the 15% average for all Shinsegae branches. Hyundai Department Store's Pangyo branch posted a 33.1% gain over the same period, more than double its chainwide average of 14.7%.
Individual shoppers also spent more. The average purchase size for gift sets at Shinsegae's South City branch rose 18% from a year earlier, above the 13% chainwide average. At Hyundai's Pangyo branch, the average purchase size for holiday items rose more than 20%, close to double the 11.3% chainwide average.
By age group, shoppers in their 20s and 30s drove the gains. At Lotte's Dongtan branch, gift set sales to customers in their 30s rose 35%, the steepest increase of any age bracket. At Hyundai's Pangyo branch, sales to shoppers in their 20s and 30s rose 50% and 40%, respectively, the top two growth rates by age group. "We believe increased gift purchases by junior-level employees at Samsung Electronics and SK hynix have contributed," a department store industry official said.
Stronger buying power translated into demand for premium sets. At Hyundai's Pangyo branch, sales of premium Korean beef gift sets priced above 1 million won rose 60% from a year earlier, the highest growth rate among the chain's branches nationwide. At Lotte's Dongtan branch, sales of premium desserts including the VASAK Chef Edition assorted gift set jumped 160%, while sales of high-end seafood such as tilefish and hairtail rose 65% over the same period.
"Sales growth is clearly concentrated in areas where incomes have risen or are expected to rise on semiconductor performance bonuses," a retail industry official said. "Because these commercial districts draw many young families, the increase in Chuseok gift set purchases among shoppers in their 20s and 30s is also higher than in other age groups."
