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In November of last year, the sales of large mart products experienced the biggest drop in more than 13 years. This is due to the growth of online grocery shopping, the closing of Homeplus stores struggling with financial issues, and choices to halt operations, as per the analysis.

As per the Ministry of Data and Statistics on the 4th, the seasonally adjusted retail sales index (2020=100) for big stores in November last year stood at 83.0, reflecting a 14.1% drop from the prior month. The retail sales index is determined by dividing the monthly product sales by the average monthly sales in 2020, which helps in analyzing consumer spending patterns.

The drop in the large mart retail sales index during November was the biggest since March 2012 (-18.9%), representing the third-biggest decrease ever and the most significant decline in 13 years and 8 months.

In 2012, measures like forced shutdowns of big supermarkets were introduced to boost local enterprises and independent sellers, and the present drop in revenue is similar to that time.

The main cause of the sales decline in November is the base effect resulting from a substantial rise in sales during the Chuseok holiday in October. Long-term influences involve the ongoing effects of the growth in online grocery shopping via platforms such as Coupang and e-commerce.

The choice to pause activities at Homeplus locations, which is currently in corporate rehabilitation, is also mentioned as a key reason. Last year, Homeplus stopped operations at branches such as Gayang, Jangrim, Ilsan, Woncheon, and Ulsan Buk-gu, and this month, it opted to halt operations at Gyesan, Siheung, Ansan Gojan, Cheonan Sinbang, and Dongchon branches.