Seoul: South Korea's three major department store chains reported on Tuesday that their luxury goods sales continued to rise last year, fueled by a consistent demand for premium products despite an overall economic slowdown.

According to Yonhap News Agency, luxury goods sales at Lotte, Shinsegae, and Hyundai department stores saw significant increases between 2020 and 2022, a period marked by "revenge spending" as consumers sought to compensate for missed travel and shopping opportunities during the COVID-19 pandemic. Although the growth rate of luxury goods sales decelerated in 2023 due to a consumer shift towards spending on travel and leisure experiences, the three companies still managed to achieve strong sales figures in the subsequent year.

Specifically, Lotte Department Store, the largest department store in South Korea by sales, reported a 5 percent increase in luxury sales in 2024 compared to the previous year. Meanwhile, Shinsegae and Hyundai department stores recorded luxury sales increases of 6.2 percent and 11.7 percent, respectively, during the same period. The companies, however, did not disclose the exact value of their luxury goods sales.

An official at Hyundai Department Store shared with Yonhap, "Demand for luxury goods remained strong and steady last year, though the sales growth of luxury items was not as explosive as in the pandemic period." This year, department store officials are optimistic that luxury sales will likely be less impacted by high interest rates and rising consumer prices, although these factors could influence consumer sentiment and the companies' overall sales figures.