As domestic marriage rates and birth rates, which had been showing a declining trend, have rebounded simultaneously for the first time in 30 years, related sales in department stores, including wedding jewellery and children’s clothing, are also showing an upward trend. Department stores are actively attracting customers by introducing high jewellery brands, renovating kids’ sections, and conducting various promotions to capture new demand. According to the retail industry on 12th September, sales in the children’s, jewellery, and lifestyle sectors of the three major department stores -- Lotte, Shinsegae, and Hyundai -- have recorded double-digit growth rates from January to August this year. The luxury watch and jewellery sector, mainly used for wedding gifts, saw an average increase of over 35% in sales from January to August compared to the same period last year. Children’s wear (14.3%) and lifestyle products including home appliances and furniture (11.1%) also showed growth.
Considering that overall department store sales increased by only 1.5% year-on-year in the first quarter of this year and decreased by 0.4% in the second quarter, the growth in these sectors is even more pronounced. This is attributed to the revival of consumer sentiment related to marriage and childbirth as they have turned to an upward trend. According to Statistics Korea, the number of marriages in Korea peaked in 1996 (435,000 cases) and then showed a declining trend, reaching a record low of 192,000 cases in 2022, before recording an increase for two consecutive years from 2023.
Department stores are also actively conducting related promotions to attract customers. Lotte Department Store reopened its Premium Kids’ Section at its main branch in Sogong-dong, Seoul, at the end of last year, and opened Kinder Universe, the largest premium kids’ section in a department store in western Gyeonggi Province, at its Incheon branch in April this year. Shinsegae Department Store greatly expanded its baby fair, which was held only at the Gangnam branch in Seoul last year, to all 13 stores nationwide and online this year. This is the first time that a baby fair has been held simultaneously at all stores nationwide. About 50 children’s brands participated, offering popular products at up to 60% discounts and increasing inventory by more than 10 times. As a result, sales in the children’s category during the event period increased by 27% compared to the previous year. Among them, sales of newborn products surged by 34%.
This is explained by a significant increase in gift demand centered on family, friends, and acquaintances. High jewellery brand entries have also been successive this year. Department stores are actively introducing global luxury brands well-known for wedding jewellery, such as Van Cleef & Arpels, Graff, and Boucheron, to absorb demand from newlyweds. There is also a trend of continuously expanding product lines for household convenience appliances such as robot vacuum cleaners and food waste processors.