Sales at South Korea’s top three department store groups fell in March as the nation’s economy and confidence remained subdued.

Despite a healthy increase in luxury spending, as reported by Inside Retail Asia yesterday and the surprise revelation that online sales have now exceeded bricks and mortar store sales, figures from the Finance Ministry show a decline of 5.4 per cent year on year.

Each month the ministry collects sales data from all three groups to serve as an ongoing trend indicator.

March’s fall nearly eroded a 6.6 per cent rebound seen in February, which was largely related to the timing of Lunar New Year, which led to an increase in inbound tourists from China.

Sales at discount stores fell by 7.4 per cent last month, following a 24.5 per cent rise in February.

But online sales rose 11.1 per cent in March.

The Finance Ministry said the domestic economy is improving with industrial activity increasing, but consumption growth has remained sluggish for several months.

The ministry will release revised figures later this month.