Rising number of marriages drives up luxury sales at department stores

(Hyundai Department Store)

Major department stores in South Korea saw sales of luxury watches and jewelry surge by over 30 percent in the third quarter despite sluggish domestic demand.

According to sources from the retail industry on Tuesday, luxury sales at major Korean department stores jumped sharply between July and September.

At Lotte Department Store, sales of luxury watches and jewelry rose 35 percent year-on-year, while Shinsegae Department Store posted a 36 percent increase, and Hyundai Department Store saw sales climb 38.4 percent.

Industry watchers noted that demand for wedding gifts appears to have driven luxury sales sharply higher ahead of the peak wedding season in October and November.

According to the Ministry of Data and Statistics, the number of marriages in the country has increased for 14 consecutive months.

Analysts also suggest that this surge is being fueled by a shift in consumer spending patterns – rather than spending heavily on studio photography, dresses, makeup, or wedding halls, couples are choosing luxury wedding gifts that can be kept long-term and hold their value.

The rise in gold prices, which pushed up jewelry prices overall, appears to have also contributed to the sales growth.

Department stores are moving quickly to strengthen their watch and jewelry offerings in response to this trend.

Hyundai Department Store has been introducing a series of Italian and French luxury brands at key locations such as The Hyundai Seoul and its Pangyo branch. It also plans to open a new boutique for French high-jewelry brand Chaumet at Pangyo in December.

Lotte Department Store became the first in the industry to bring in Swiss high-end watchmaker Jacob & Co. last month after simultaneously opening Van Cleef & Arpels and Graff boutiques at its main branch in March.