South Korea’s retail landscape is witnessing a significant revival, underpinned by a rise in consumer sentiment. According to data released by the Ministry of Trade, Industry and Energy, total retail sales rose 4.2 per cent in November compared to the previous year. This growth was fueled by a Consumer Sentiment Index (CSI) that climbed to 112.4 - the highest reading in seven years. The uptick reflects a definitive rebound in domestic demand, as shoppers move past earlier economic uncertainties to embrace a season of premium spending.

Department stores lead the winter fashion charge

Physical retail outperformed expectations, with department stores reporting a robust 12.3 per cent Y-o-Y increase. The primary driver was a growth in high-end winter apparel and global luxury brands, which saw sales jump by 23.3 per cent. ‘Department stores have successfully recast themselves as experiential content platforms,’ noted a Ministry official, highlighting how premiumization strategies attracted big spenders who shifted away from duty-free and overseas shopping due to a weaker won. This ‘stay-at-home luxury’ trend has provided a much-needed boost to the domestic fashion ecosystem, even as hypermarkets struggled with a 9.1 per cent dip in food-related sales.

While online platforms now account for 54.1 per cent of total retail revenue, the digital fashion segment faced a surprising contraction. Online sales for foodstuffs and cosmetics soared by 15.8 per cent and 10.2 per cent respectively while sales of fashion and sports-related items declined by 7 per cent and 14.1 per cent. Industry analysts suggest, this indicates a ‘hybrid shopping’ shift, where consumers prefer the tactile experience of trying on winter coats and luxury goods in-store while utilizing e-commerce for high-frequency essential categories. This divergence presents a new challenge for digital-only apparel retailers heading into 2026.