Bakery Becomes Sales Hero with 'Ppangji Pilgrimage' to Department Stores

Lotte Department Store Sees 45% Increase in Bakery Sales
Attracts Popular Bakeries and Pop-up Stores
Effective in Securing Customers in Their 20s and 30s

A customer is looking at bakery products at the PLD store in the Lotte Department Store main branch in Jung-gu, Seoul.

[Asia Economy Reporter Lim Chun-han] Office worker Jin-ho Lee (pseudonym) visits department stores for “bread pilgrimages (bread + pilgrimage)” every weekend. This is because bakery hotspots are emerging in every department store, and pop-up store events are continuously held. Lee said, "For bread lovers like me who go on bread pilgrimages even when traveling, department stores have become an essential shopping course these days," adding, "It's great to easily find famous bakeries from all over the country in department stores."

Recently, a dessert craze has swept through the MZ generation (Millennials + Generation Z), prompting department stores to enter a “bread war.” Their strategy is to attract large crowds through popular bakeries and naturally connect this to sales of other products, creating a fountain effect.

According to Lotte Department Store on the 17th, bakery sales from January 1 to the 11th of this month increased by 45% compared to the same period last year. During the same period, Shinsegae Department Store saw a 30.1% increase, and Hyundai Department Store saw a 19.1% increase. It is especially effective in securing customers in their 20s and 30s, who have emerged as major spenders. According to Lotte Department Store, more than 50% of customers using the bakery at the main store are in their 20s and 30s.

Famous bakeries are boosting foot traffic while also driving department store sales. According to Shinsegae Department Store, desserts account for one-fifth of the food hall sales at the Gangnam branch. Customers who mainly use desserts visit the store far more frequently than customers of general fashion or luxury brands. Last year, the average monthly visit to department stores by general customers was four times, but customers subscribing to bakery services visited an average of eight times per month.

Department stores are eager to attract popular bakeries and pop-up stores. Lotte Department Store opened seven bakery hotspots including Pladi, Yann Couvret, and Presse at its main store from June to July. Until the 21st of next month, the Jamsil branch is hosting a pop-up store featuring Tortier, Hooligan Tart, Boulangerie Boeuf, Wellhouse, and others. Shinsegae Department Store opened the British-style bakery cafe Layered at its Centum City branch on the 10th. At the Gangnam branch, until the 25th of this month, they are showcasing the pumpkin pie from Peace Piece, known as a must-try pie in Ilsan. From the 26th to the 8th of next month, they will continue with a pop-up store for Konditori Oven, a baked goods specialty store in Hannam-dong. Hyundai Department Store has introduced Camel Coffee, famous for its ang butter, at The Hyundai Seoul and Pangyo branches. Galleria Department Store is holding a pop-up store featuring Yeonri Heejae, famous for Kaesong juak, at the luxury hall until the 18th, and from the 26th, a pop-up store for Parole & Lang, a pie specialty store in Yeonnam-dong.

A department store industry official said, "A dessert craze is spreading mainly among the MZ generation, who place great importance on social media (SNS) verification," adding, "Desserts change trends faster than any other genre, so we plan to quickly introduce new and popular foods."