Retail sales at South Korea’s department and discount stores fell again in March – but it wasn’t all bad news.

Despite a healthy increase in luxury spending, as reported by Inside Retail Asia last month, and the surprise revelation that online sales now exceed bricks and mortar store sales, revised data from Korea’s Trade Ministry shows consumers are holding back from buying spring clothing due to lingering cold weather.

Combined Korea retail sales last month at department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co declined 5.7 per cent in March year-on-year.

This was slightly revised down from a 5.4 per cent fall estimated by the finance ministry early in April and compared to a 6.6 per cent rise in February.

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

The ministry said department store sales are under pressure from increasing competition from online vendors and outlet malls.

The same data showed annual sales at discount stores fell 6.5 per cent in March from a year ago – better than the 7.4 per cent decline estimated earlier.

Clothing sales at department and discount stores dropped 7.1 per cent and 10.6 per cent respectively, in annual terms, a reflection of the climate.

Other government figures suggest total retail spending in Korea was down just 0.6 per cent month-on-month in March. But those figures include motor vehicle and fuel sales. Private consumption rose 0.6 per cent over the first quarter of 2015.