Jamsil Branch Surpasses 2 Trillion KRW in Sales Last Month... Forecast to Join 2 Trillion Club
Main Branch Nears 2 Trillion KRW Sales with Nearly 20% Growth Rate
Experience Pop-ups, Upgraded and Diversified MD, Renewal Effects
Beyond Endemic, Expansion of Overseas Tourist Inflow Next Year
Clear Sales Growth Expected for Two Department Stores in 'Tourism Special Zone'
CEO Jung Junho Emphasizes Getting One Step Closer to 'Gangnam No.1 Address'
[Asia Economy Reporter Yuri Kim] It has been revealed that the combined sales of Lotte Department Store's 'two top' branches, Jamsil and Main Store, are approaching 4 trillion won this year. Beyond the endemic era (periodic outbreaks of infectious diseases), it is expected that next year, with more active inflow of overseas tourists, the sales growth of the two department stores located in 'tourism special zones' will become even more pronounced.
According to the distribution industry on the 19th, Lotte Department Store Jamsil branch already surpassed 2 trillion won in sales last month, signaling its entry into the '2 trillion club' this year. This is the result of a double-digit growth rate from the estimated 1.7973 trillion won sales last year. Until last year, among domestic department stores, Shinsegae Department Store Gangnam branch was the only one to exceed 2 trillion won in annual sales. Lotte Department Store Main Store is also expected to approach 2 trillion won in sales this year. It is anticipated to record nearly 20% growth compared to the estimated 1.667 trillion won sales last year, surpassing last year's growth rate which was in the low double digits. Lotte Department Store Jamsil and Main Store ranked second and third respectively in domestic department store sales last year.
This year, Jamsil branch acquired the Lotte Mall business rights, reaping significant benefits from integrated operations. By establishing itself as a mega-store integrating the department store, AvenueL, and the mall, it was able to broadly experiment with 'experiences'?a core of offline stores?targeting various demographics including the MZ generation (Millennials + Generation Z). A representative example is the experiential tennis pop-up store 'The Court' launched in June. With crowd cheers and ball-hitting sounds as if at an actual tennis court, a purple court, a large racket, and a central photo zone decorated with tennis balls, limited edition rackets were sold, attracting over 50,000 visitors over three weekend days. CEO Junho Jung's 'Gangnam No.1' strategy also proved effective. Jamsil branch pursued upscale positioning by hosting first stores and pop-ups of various luxury and beauty brands, while also expanding more general visitor inflow by attracting popular 'bread pilgrimage' stores such as Gordon Ramsay Burger, Apple Store, Zara (renewed as Seoul's largest experiential store), and Knotted. In the outdoor plaza, attractions like Bellygom, Pok?mon, Rubber Duck, and a giant Christmas tree drew shoppers to Lotte Town.
The Main Store also saw remarkable sales growth this year as it entered the final phase of a phased renewal during the COVID-19 period when its main customers, Chinese tourists, were subdued. The men's overseas fashion hall, which significantly strengthened men's luxury goods, more than doubled sales compared to before the renewal, and the beauty hall also saw a 30% increase in sales compared to the previous year, clearly showing the effects of the renewal.
The market expects that Lotte Department Store, which was relatively sluggish during the COVID-19 period, will achieve a leap this year and produce even more meaningful results next year. Since Jamsil branch and Main Store are located in the Jamsil Tourism Special Zone and Myeongdong Tourism Special Zone respectively, it is forecasted that with the full-scale inflow of overseas tourists including those from China next year, sales growth will accelerate. After the ongoing renewal, Jamsil branch aims to achieve annual sales of 3 trillion won together with Lotte Mall. The Main Store plans to complete the kids category renewal next year and strengthen its premium kids MD.
A distribution industry official said, "Jamsil branch has various shopping and tourism infrastructures around Seokchon Lake, including the department store, mall, duty-free shop, concert hall, World Tower, and Lotte World, so the period after next year, when overseas tourists are expected to return in full, is even more promising," adding, "The Main Store will also see sales expansion in earnest after renewal along with the increase in Myeongdong tourists next year."
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