bhc Group, Chairman Park Hyun-jong's 'Relocation Strategy Worked'... Outback Sales Grow Up to 2x

Outback Steakhouse's new store opening strategy of entering complex shopping malls, implemented after being acquired by bhc Group, is showing significant results.

Outback's Sillim Time Stream branch, opened before last year.
[Photo by Outback]

Outback announced on the 21st that an analysis of sales from four relocation stores among the new stores opened last year showed that sales at some locations increased by up to twice as much.

Outback, acquired by bhc Group in November 2021, implemented a new store opening strategy focused on complex shopping malls that maximize customer accessibility and convenience, called relocation. Accordingly, 15 new stores opened nationwide last year, most of which were located in complex shopping malls?spaces where shopping and culture are enjoyed together, such as shopping malls, department stores, and outlets.

Outback's relocation strategy is being implemented in line with expanding customer convenience and accessibility amid rapidly changing climate and lifestyles. It first focused on the shift in customer lifestyles centered around mall living zones where dining areas, cafes, shopping, and cultural activities can be experienced all at once. Furthermore, by relocating to malls, it resolves parking difficulties at existing stores while simultaneously minimizing the impact of climate and maximizing customer accessibility.

As a result, the newly relocated and reopened Sillim Time Stream store in October last year saw its average monthly sales nearly double compared to the previous store, clearly demonstrating the effectiveness of Outback's relocation strategy. Time Stream, where Outback is located, is a complex shopping mall directly connected to Sillim Station, served by Line 2 and the Sillim Line, with over 100,000 daily foot traffic. It offers convenience with a theater, various dining establishments, cafes, and shopping options.

The Bundang AK store, relocated in December last year to AK Plaza Bundang, just a 5-minute walk from the previous location, added the accessibility of the large complex shopping mall AK Plaza and the Suin-Bundang Line to the benefits of the existing location at Bundang Seohyeon, which enjoys abundant foot traffic from bus stops serving southern Seoul and Gyeonggi and Seohyeon-ro. As a result, sales increased by about 40% compared to the previous store.

The Sadang Pastel City store and Gimhae Shinsegae store, which also relocated to nearby complex shopping malls, saw sales growth of approximately 60% and 85%, respectively, compared to their previous stores.

An Outback representative stated, “The relocation store opening strategy is bringing not only increased sales but also more positive effects on customer satisfaction, so we plan to increase the proportion of relocation stores located in complex shopping malls among new stores going forward.”