[Asia Economy Reporter Kim Yuri] The traditional layout formula of department stores, where "cosmetics are on the first floor and food stores are in the basement," is being broken. To attract MZ generation (Millennials + Generation Z) customers, some department stores are transforming their first floors into bookstores, while luxury brands are taking over basement areas that were mainly occupied by food courts.
◇Going to Department Stores for Books and Art
According to Lotte Department Store on the 13th, since opening the 817㎡ (approximately 247 pyeong) multi-cultural space 'Daragbyeoljjang' on the main first-floor area of its Ilsan branch on the 30th of last month, sales from customers in their 20s and 30s at the Ilsan branch have increased by 38% compared to the same period last year.
'Daragbyeoljjang' adopted an attic room concept to establish itself as a "multi-cultural space where customers can stay longer and enjoy various pleasures," using toned-down colors and lower ceiling heights compared to surrounding stores. The tenant brands also introduced bold "experiential content" not previously found on the first floor of department stores, such as bookstores and galleries.
◇Luxury Brands and Wine Bar on Basement Level 1
After about a year of renovation, Shinsegae Department Store Gyeonggi branch has newly opened luxury and cosmetics specialty halls on basement level 1 and ground floor 1. The luxury specialty hall on basement level 1 is also the first of its kind in the department store industry. The total sales area has been expanded to 11,841㎡ (approximately 3,600 pyeong), more than twice the previous size. Upon entering the first floor of the department store, customers can immediately encounter luxury brands such as Marni, Max Mara, Philipp Plein, and Boon the Shop Shoes. A wine bar has been introduced inside the wine house on basement level 1, allowing customers to enjoy wine while staying in the luxury hall. The food paired with the wine has been selected from popular menus such as tteokbokki, making it comfortably accessible.
An industry insider said, "To encourage customers to visit offline stores easily, differentiated content including experiential elements is being fully placed on highly accessible areas such as the first floor of department stores." He added, "This strategy will be applied to other department stores attempting renovations in the future."
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