[E-Daily Reporter KIM JUNG YOU ] I visited the Cheongnyangni branch of LOTTE Himart(071840) on the afternoon of the 1st. Throughout the store, customers could be seen consulting with staff members about purchasing SamsungElectronics(005930) home appliances, smartphones, and other items. A staff member at the LOTTE Himart Cheongnyangni branch explained, “We have exactly one unlocked ‘Galaxy S26’ left in stock,” adding, “Thanks to the ‘SamsungElectronics(005930) ’ event, customer inquiries about purchasing products have increased compared to before.”

In particular, there was a noticeable surge in customers looking to buy smartphones. A housewife in her 50s whom we met on-site said, “Since I live near Gyeongdong Market anyway, I often use Onnuri gift certificates, so I came out to upgrade my smartphone while I was at it,” adding, “I made a point of coming here (to a major electronics retailer) because the staff provide explanations and I can compare various models.”

With SamsungElectronics’ Appreciation Festival concluding on the 5th, major electronics retailers such as LOTTE Himart(071840) and Electronics Land were also beaming with joy for the first time in a long while. The festival appears to be paying off handsomely, with home appliance sales last month—when the festival was in full swing—actually recording double-digit growth rates. This is a “much-needed relief” for domestic electronics retailers, which have been enduring a prolonged slump.

According to industry sources on the 6th, LOTTE Himart’s sales of IT and home appliance products increased by 60% year-over-year from the 8th to the 28th of last month, when the Samsung Appreciation Festival began. Sales of major home appliances also rose by 40% during the same period. While these sales figures weren’t generated solely by the Samsung Appreciation Festival, the industry believes the event had a significant impact.

This Appreciation Festival was a SamsungElectronics event held from the 8th of last month to the 5th of this month, offering a 20% rebate on the purchase amount in the form of digital Onnuri gift certificates. According to industry sources, the total value of Onnuri gift certificates distributed during this event is reported to have reached approximately 400 billion won.

Purchasing demand was concentrated primarily at offline home appliance stores—including Samsung Store, as well as large supermarkets and department stores—with major home appliance retailers like LOTTE Himart also included among them. In fact, during the Samsung Appreciation Festival, which ran from the 8th of last month to the 5th of this month, some LOTTE Himart stores reportedly ran out of stock on certain models and had to wait for restocks.

A LOTTE Himart official stated, “While the recent sales increase wasn’t generated solely by the Samsung Appreciation Festival, it’s true that the event helped drive customer traffic during that period.”

Another major home appliance retailer, Electronics Land, also appeared to benefit from the SamsungElectronics effect. As of last month, Electronics Land’s sales of SamsungElectronics products reportedly increased by more than 95% compared to the same period last year. Analysts attribute this growth to continued customer interest in the Onnuri Gift Certificate rebate program, with mobile and major home appliances—including smartphones, air conditioners, and washing machines—driving sales growth.

An Electronics Land official said, “Overall, we believe the SamsungElectronics Onnuri Gift Certificate benefit had a positive impact on customer traffic and purchase consideration,” adding, “We understand that customer response was particularly strong for summer seasonal appliances and mobile products.”

Recently, the domestic home appliance retail industry has been mired in a slump for several years due to declining demand for home appliances. Although LOTTE Himart’s operating profit increased by 7.9 billion won year-over-year last year, its total operating profit amounted to only 9.6 billion won, and SY CO., LTD. (the operator of Electronics Land) also posted an operating loss of 20.4 billion won. As the domestic home appliance market has generally entered a phase of slowing demand, these companies are bearing the brunt of the impact.

In this context, the Samsung Appreciation Festival appears to have served as a much-needed lifeline for the home appliance retail sector. Of course, this event alone will not determine home appliance demand in the medium to long term, but for home appliance retailers preparing for change, the mere fact that it drew customers back into their stores is highly significant.

A retail industry official stated, “The foundation of offline retail is ‘first and foremost, bringing customers to the store,’” adding, “When large-scale events like the Samsung Appreciation Festival take place, home appliance retailers gain the very ‘opportunity to sell experiences,’ so they must make the most of such situations.”