BMI Expects Subdued Retail Activity In 2012

The near-term domestic demand conditions in South Korea are expected to be constrained by household debt deleveraging and a deteriorating macroeconomic outlook. These dynamics are expected to impinge on retail and consumer activity in 2012, and we are expecting slower growth of 7.8% in domestic retail sales this year. With opportunities for organic expansion in large-scale retail formats quickly running out, we maintain our view that the convenience retail sector is poised to outperform in the longer term.

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