SK: Retail sales above expectations in November

Retail sales outperformed expectations in November, achieving a year-over-year growth of 5%, marking the 11th consecutive month of positive growth. On a seasonally adjusted monthly basis, sales increased slightly by 0.4%.

Out of nine retail sub-categories, seven recorded increases. The most significant contribution came from non-specialized stores (like supermarkets), which account for more than 40% of the total retail turnover, growing by over 5% year-over-year. Additionally, the standout performer was e-commerce and mail-order sales, which saw a remarkable increase of over 30%, significantly boosting overall retail performance.

The development of retail sales at the end of the year signals that household consumption remains at solid levels. We estimate a year-on-year increase of retail sales exceeding 4% in 4Q24, which will ultimately be reflected in total household consumption within GDP and its positive contribution to economic growth. This trend is driven by a significant decline in inflation and rising nominal wages, creating room for growth in real household expenditures.