Department store-related stocks are strong on expectations of increased sales from foreign tourists

As the trend of increased department store sales among foreign tourists was highlighted, department store-related stocks continued their upward trend until the close of the market on the 16th.

On this day, Hyundai Department Store [069960] closed at 198,400 won, up 8.30% in the stock market.

It was weak 0.98% at the opening, but turned upward in the early hours of the session and soared to 199,700 won at one point, hitting a 52-week high.

Stocks in other department store industries also closed higher, including Shinsegae [004170] (8.79%), Lotte Shopping [023530] (6.28%), and Hanwha Galleria [452260] (0.54%).

The department store industry was strong by 5.62%.

The buying trend seems to have been stimulated by expectations that the increase in sales from foreign tourists will continue in the stock market.

Park Jong-dae, a researcher at Hana Securities, explained, "This year, shopping at department stores with good accessibility to the city center is emerging as a key channel for foreign tourists, and they mainly consume luxury goods." He added, "The proportion of foreign sales at department stores has recently risen to 7% of total sales, and foreign sales at department stores are increasing 100% compared to the previous year."

Yoo Jeong-hyeon, a researcher at Daishin Securities, said, "The trend of increased foreign sales at department stores is expected to continue for the time being, considering the popularity of K-culture and the weakening Korean won trend. Just as the Japanese department store industry had its valuation re-evaluated in 2023-2024 due to increased foreign sales, the Korean department store industry will also undergo re-rating along with improved performance for the time being."