Shinsegae, 30% of Sales from MZ Generation... 'Hot Place' Born from Reverse Thinking

Shinsegae Department Store Gangnam Branch.

Shinsegae Department Store has been recognized for presenting the growth direction of offline department stores in the new normal era through unconventional strategies and bold challenges that break traditional practices.

After a major two-year renewal, the Gyeonggi branch saw the sales proportion of MZ generation (Millennials + Generation Z), potential VIP department store customers, increase to 30%. In particular, the food hall features experts stationed in each section such as livestock, cooking, and health, providing services tailored to customer preferences and demands, and introduced the industry's first exclusive membership service for the food hall, resulting in average sales doubling within one year of the renewal. The Centum City branch also became a hot spot for MZ generation customers in the Gyeongnam region by unveiling the industry's first and largest sports and outdoor specialty hall through the renewal of the mall's 1st and 2nd floors. Visits by customers in their 20s to the Centum City mall's 1st floor increased nearly 40 times compared to before the renewal. Shinsegae Department Store plans to continue leading the lifestyles of diverse customers, including the MZ generation, through offline space innovation and differentiated content this year as well.

Future-oriented 'digital transformation' is also accelerating. In June last year, Shinsegae Department Store set a record by selling out 10,000 units of non-fungible tokens (NFTs) featuring its own character 'Poovilla' within one second, the first in the industry. They added new Shinsegae-exclusive content such as e-book services, music streaming, seasonal food recipes, social services, mobile art auctions, and NFT creation, sales, and exhibitions, all firsts in the distribution industry. This year, they plan to expand mobile application users through strengthening online 'gift sending' services and more.