New Department Store Sales Soar... Through Experiential Content

Daejeon Shinsegae Leads Growth Rate... Popular Regional Customized Experiential Content
Shinsegae Gangnam and Lotte Jamsil Sales Reach 2 Trillion Won... Seven Stores Including Hyundai Mokdong See Decline

Last year, newly opened department stores such as Daejeon Shinsegae Art & Science, Lotte Dongtan Branch, and The Hyundai Seoul recorded high sales growth rates. These department stores are mammoth-sized outlets that have gained great popularity by filling their spaces with experiential content tailored to the local commercial districts instead of traditional retail facilities.

According to the distribution industry on the 11th, Daejeon Shinsegae Art & Science posted sales of 864.6 billion KRW, marking a 159.4% increase compared to the previous year and ranking first in growth rate. Following were Lotte Dongtan Branch with 447.5 billion KRW (90%) and The Hyundai Seoul with 950.9 billion KRW (43.4%).

Daejeon Shinsegae Art & Science is a future-oriented department store that combines culture, art, and science. Its sales area is approximately 92,876㎡, making it the third largest store in Shinsegae after Centum City and Daegu branches. Through thorough commercial district analysis, half of the sales area was dedicated to experiential facilities desired by local residents, such as a science museum, art observatory, aquarium, and indoor sports theme park. As a result, it has established itself as a landmark attracting visitors from other regions in the Chungcheong area.

Lotte Dongtan Branch is the largest in Gyeonggi Province with a total floor area of 246,000㎡, consisting of eight floors from basement level 2 to the 6th floor above ground. More than 50% of the total area is filled with experiential content such as art, culture, and food & beverage (F&B), creating attractions and entertainment. In particular, reflecting the characteristics of the Dongtan commercial district, special attention was given to the kids’ zone, including the kids caf? Champion The Energizer, the new-concept baby food caf? Yami Meal Town, and the kids beauty brand DL Friends. Additionally, convenience facilities for customers with young children were greatly expanded, including a large infant rest area and premium stroller rental services.

The Hyundai Seoul spans from basement level 7 to the 8th floor above ground, with a sales area of 89,100㎡, making it the largest department store in the Seoul area. This store reduced retail space by half and significantly enhanced indoor landscaping and customer rest areas. A representative facility is the indoor green park Sounds Forest on the 5th floor, which offers an open and spacious feeling, resulting in high customer satisfaction. The entire area covers 3,300㎡ and features natural grass, about 30 trees, and various flowers. To provide a pleasant shopping environment, the maximum aisle width was secured at 8 meters, wide enough for eight strollers to move simultaneously, which is 2 to 3 times larger than typical department stores.

Exterior of Daejeon Shinsegae Art & Science. (Photo by Shinsegae Department Store)

Two department stores recorded annual sales exceeding 2 trillion KRW. Shinsegae Gangnam Branch maintained first place with sales of 2.8398 trillion KRW. Lotte Jamsil Branch followed closely with sales of 2.5982 trillion KRW, a 21% increase from the previous year, narrowing the gap with Shinsegae Gangnam. The industry is paying close attention to whether one of these two stores will surpass 3 trillion KRW in sales for the first time this year.

Stores with annual sales exceeding 1 trillion KRW include Lotte Main Branch (1.9343 trillion KRW), Shinsegae Centum City Branch (1.8448 trillion KRW), Hyundai Pangyo Branch (1.4532 trillion KRW), Shinsegae Daegu Branch (1.4391 trillion KRW), Hyundai Main Branch (1.2374 trillion KRW), Galleria Luxury Hall (1.2260 trillion KRW), Hyundai Trade Branch (1.2244 trillion KRW), Lotte Busan Main Branch (1.2214 trillion KRW), and Shinsegae Main Branch (1.1437 trillion KRW).

Among the 70 major stores, seven recorded negative growth compared to the previous year. The decline rates were highest at Hyundai Mokdong Branch (-4.8%), The Hyundai Daegu (-3.8%), Hyundai Mia Branch (-3.5%), Lotte Daegu Branch (-2.8%), Lotte Centum City Branch (-2.7%), Galleria Timeworld (-0.6%), and AK Bundang Branch (-0.4%), in that order.