[Edaily Reporter Kim Kyung-eun] Department store-related stocks are trading higher across the board in early trading on the 5th. This is interpreted as a rotation into promising sectors where earnings improvements are expected, as the semiconductor sector has slowed.

According to MP Doctor, as of 9:19 a.m. today, #HyundaiDepartmentStore is trading at 149,000 won, up 9,300 won (6.65%) from the previous trading day. At the same time, #Shinsegae is trading at 684,000 won, up 25,000 won (3.79%) from the previous close.

Convenience store stocks such as #BGF Retail (8.06%) and #GS Retail (3.85%) are also rising in tandem.

This is interpreted as a result of increased consumer spending driven by this year’s stock market boom, which has raised expectations for improved earnings in the retail sector. The influx of foreign tourists and increased sales are also cited as positive factors.

Lee Jin-hyeop, an analyst at Hanwha Investment & Securities, said, “The retail sector showed strength in the first half of the year, led by department stores, and we expect this trend to continue into the second half.” He added, “We recommend building a portfolio centered on department stores, which are achieving structural growth in both domestic consumption and inbound tourism.”

He added, “The effects of qualitative growth in the convenience store sector have been evident in earnings since the second half of last year,” noting, “As the entire convenience store industry shifts from quantitative to qualitative growth, the operating leverage effect is expected to continue.”