Luxury goods sales growth slows in South Korean department stores

Luxury goods sales growth at major South Korean department stores, including Lotte, Shinsegae, and Hyundai, has slowed significantly. After recording growth rates of approximately 40% in the second quarter of this year, the growth rate for luxury sales dropped to the 10% range in October.

The jewelry sector experienced a particularly sharp decline. Growth rates for jewelry sales at these major retailers, which were between 65% and 80% in the second quarter, fell to roughly 15% to 20% in October. Analysts suggest that a weakening stock market and falling gold prices have reduced the incentive for consumers to purchase luxury items ahead of expected price hikes.

This trend mirrors global market shifts. LVMH reported a 5% decrease in organic sales for its fashion and leather goods division in the third quarter, while Gucci saw a 6% revenue decline. Major luxury groups, including Kering, Hermès, and LVMH, have seen their stock prices drop by approximately 40% this year. Some brands, such as Boucheron, have even adjusted previously increased prices back to original levels.