The rise of e-commerce in South Korea has led to a steady decline in retail employment, with the number of sales workers decreasing for 60 consecutive months, according to recent government data.
Statistics Korea reported on September 26 that the number of sales workers last month stood at US$2.55 million, a decrease of 71,000 compared to the same period last year. This marks the continuation of a downward trend that began in September 2019.
The category of sales workers encompasses a wide range of roles, including clothing, cosmetics, electronics, furniture, and food product salespeople, as well as car salespeople, insurance planners, door-to-door salespeople, and promotional assistants.
This persistent decline in retail jobs stands in stark contrast to overall employment figures. Total employment reached 28.8 million last month, an increase of 123,000 from the previous year, marking 42 consecutive months of growth since March 2021.
The primary driver behind this sustained decrease in sales workers is the rapid growth of online shopping, particularly through e-commerce platforms.
The shift towards online retail has been further accelerated by the Covid-19 pandemic, which strengthened consumer preferences for contactless transactions.
Data from Statistics Korea illustrates the dramatic growth of online shopping. In 2023, online shopping transactions totalled $169.8 billion, a 143% from 2017.
The sector saw significant growth during the pandemic, jumping from $101.3 billion in 2019 to $117.4 billion in 2020, then surging to $141 billion in 2021.
In 2022, online shopping transactions surpassed $148.3 billion for the first time, reaching $156.5 billion.
The upward trend continues in 2024, with transactions in the first seven months totaling $104.1 billion, a 9% increase from the same period last year.
The range of products available through online shopping continues to expand, now including everything from food delivery and travel products to clothing, shoes, bags, cosmetics, books, and furniture.
Industry experts suggest that the number of sales workers may continue to decrease as companies intensify their digital transformation efforts, a trend that gained momentum during the Covid-19 pandemic.
Online marketplaces are increasingly replacing the role of physical stores, while existing shops are adopting technologies such as self-checkout kiosks and serving robots, further reducing the need for human staff. (Source – Korea Bizwire/Inside Retail)
