Sales growth at the nation's major discount outlets and department stores cooled in May from the previous month mainly due to weaker demand for groceries and sports products, a government report showed Thursday.

   Total sales at the three leading discount outlets moved up 2.4 percent on-year last month, compared with the 4.6 percent annual gain reported for April, the Ministry of Knowledge Economy said.

   The ministry said groceries, which accounted for 51.4 percent of all sales, expanded 4.0 percent on-year vis-a-vis 5.7 percent growth reported for the previous month.

   It said sales of sports-related products increased just 2.7 percent down from the 9.4 percent gain reported in the previous month. Sales numbers for clothing and household products edged up 0.1 percent and 0.7 percent, respectively, from the year before, while demand for consumer electronics contracted 1.9 percent on-year.

   "More holidays and good weather contributed to the modest gains in groceries, but overall sales were stagnant as people on the whole cut back on spending," the report said.

   The report also showed sales at department stores increasing 8.7 percent on-year, down sharply from the 15.1 percent surge tallied for the month before.

   Sales of groceries rose 8.2 percent, with luxury goods soaring 21.1 percent, while numbers for household goods and miscellaneous items all rising compared to a year earlier. The gains, however, were all smaller than increases reported in April.

   The monthly report is based on sales figures from three department stores -- Lotte, Shinsegae and Hyundai -- and three discount stores -- Lotte Mart, E-Mart and Homeplus -- and is used as a key indicator of South Korea's consumer sentiment.

Source: Yonhap News (June 16, 2011)