Competition in Entertainment and Food Instead of Department Stores
Lotte and Shinsegae Department Stores to Open New Locations in the Second Half of the Year
[Asia Economy Reporter Kim Yuri] Following the successful opening of Hyundai Department Store's 'The Hyundai Seoul' in Yeouido, Seoul, Lotte and Shinsegae are preparing to open new department stores in the Gyeonggi and Chungcheong regions respectively in the second half of the year. Along with the introduction of major luxury brands aligned with new consumer trends, the success of department stores is increasingly determined by 'entertainment' reflecting local demand characteristics and 'food' leading trends. The two upcoming openings are also focusing heavily on 'experiential content.'
◇ Lotte, Entire Basement Level 2 as a Cultural Center
On the 16th, Lotte Shopping announced that the opening date of 'Lotte Department Store Dongtan Branch' has been postponed from June to the second half of this year, expected around August to September. The department store stated that the schedule is being adjusted to launch grandly in line with the Fall/Winter (F/W) season. Lotte Department Store Dongtan Branch is the largest department store in Gyeonggi with a total floor area of 246,000㎡. It consists of basement level 2 to ground level 8, with a sales area of 93,958㎡. Annual sales of about 800 billion KRW are expected by 2023.
The most notable feature of Lotte Department Store Dongtan Branch is that the entire basement level 2, spanning 6,600㎡, will be filled with experiential classes and workshops, creating a 'new concept experiential space.' The cultural center, which used to be located in a corner of the department store, is now consolidated into an entire floor. A kids cafe specializing in English education will also be included. Lotte Department Store made this decision based on surveys conducted last month through local mom cafes. It considered that many trendy 20-30-year-olds interested in overseas luxury and fashion, as well as young 'kids moms' passionate about their children's education, reside in the Dongtan area. The two large local mom cafes have a combined membership of 380,000. A Lotte Department Store official said, "We are creating a space where families can enjoy various experiences together with their children," adding, "We will also strengthen and showcase premium food halls such as 'Lotte Food Avenue,' so trendy food options will be abundant."
The store will also feature its own lifestyle shop 'The Conran Shop,' which handles high-end imported furniture and designer-style accessories. Dongtan Branch plans to combine the advantages of a shopping mall to realize a 'flagship street mall.' It enhances openness with features like a skylight-type large void and places luxury brand stores accessible directly from outside the department store. Mid-level terrace parks will also be introduced. Lotte Department Store expects broad consumer access due to its direct connection to SRT and GTX Dongtan Station.
◇ Shinsegae to Include Science Museum at Daejeon Expo Branch
Shinsegae will also open 'Daejeon Shinsegae Expo Branch' at the Expo Science Park in Yuseong-gu, Daejeon, at the end of August. This is the first new store in five years since the Daegu branch in 2016 and the 13th Shinsegae Department Store. It has five basement floors and 43 above-ground floors, with a total floor area of 280,000㎡. The site will include not only the department store but also Shinsegae's first hotel 'Onoma,' a 193-meter-high observatory offering panoramic views of Daejeon, and a 14,876㎡ integrated rooftop garden.
Shinsegae aims to develop this location as the 'best landmark in Chungcheong' where shopping, science, and nature harmonize. They especially expect synergy with the 'Shinsegae Science Museum,' an educational, cultural, and experiential space created in collaboration with KAIST. The concept includes activities for children to enjoy and shopping and activities for parents to relax.
To this end, the branch will feature an indoor sports theme park offering activities such as rock climbing and screen baseball, a movie theater equipped with the first Dolby Cinema in the Daejeon Chungcheong area, and a new-concept aquarium where visitors can experience live marine creatures and various species through media content. A Shinsegae Department Store official emphasized, "It will become a landmark in the central region beyond just a place to sell goods."
Negotiations for popular luxury brand entries are also underway. Confirmed brands include Belgian luxury brand Delvaux, French luxury jewelry brand Boucheron, and Shinsegae's luxury select shop Boon the Shop. Financial investment sectors forecast the annual sales of Shinsegae Expo Branch to reach around 700 billion KRW two to three years after opening.
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