Emart Seongsu Branch to Close on 25th... To Reopen as a Future-Oriented Store After 27 Years

Seongsu Branch Closing on 25th, Emart Headquarters Moves to Sunhwa-dong
Future-Oriented Emart Stores to Launch as Early as 2027
Store Renewal, Digital Enhancement... Accelerating Asset Reallocation

Emart Seongsu Branch in Seongdong-gu, Seoul, which holds symbolic significance as it is located alongside Emart headquarters, will close on the 25th of this month. This marks the end of operations after 22 years since its opening in 2001. The Seongsu Branch is expected to be reborn as a 'future-oriented store,' which Emart has recently been focusing on, at the same location as early as 2027.

Customers are shopping at Emart Seongsu in Seongdong-gu, Seoul, on the 20th, as the 'SSG Sale' celebrating the SSG Landers' victory continues. Photo by Jinhyung Kang aymsdream@

Emart Seongsu Branch Closes on the 25th... After 22 Years

According to the distribution industry on the 5th, Emart Seongsu Branch has confirmed its closing date as the 25th of this month and has begun preparations related to the closure. The closure of the Seongsu Branch was anticipated when Emart sold the land and building of its Seongsu-dong headquarters in 2021 to the Krafton-Mirae Asset Consortium for 1.22 trillion KRW. The branch was popular among Emart stores due to its symbolic presence alongside the headquarters, large scale, and diverse product assortment. With the contract expiring this month, Emart headquarters will also relocate to the Orange Center in Sunhwa-dong, Jung-gu.

A building designed by British architect David Chipperfield, winner of the '2023 Pritzker Prize,' will be constructed on the Emart headquarters site. The office facility will have a total floor area of 217,538㎡, with 8 basement floors and 17 above-ground floors. Neighborhood living facilities will be located on the 1st and 2nd floors above ground, and sales facilities will be established on the 1st basement floor. The Krafton-Mirae Asset Consortium plans to complete the development of the complex building by as early as 2027. Once development is complete, Emart Seongsu Branch will re-enter the site as a future-oriented store.

Emart’s Focus on Rebirth as a 'Future-Oriented Store'

Emart has recently been putting effort into transforming stores into future-oriented formats. Following the renewal of nine stores including Wolgye Branch in 2020, 19 stores were renovated in 2021, and eight stores last year. This year, renovations are planned for about ten more locations. In particular, the Yeonsu Branch, which reopened after renovation on the 30th of last month, is a mall-type future-oriented store that, along with Wolgye Branch introduced in 2020, promotes itself as a 'Starfield in Our Neighborhood.' Emart Yeonsu Branch shifted its store composition from 70% Emart and 30% tenants (rented stores) to 30% Emart and 70% tenants. The grocery section was expanded while other sections were reduced, and various tenants and experiential spaces were added to transform the store into a place not only for shopping but also for eating, drinking, and enjoying culture. The Seongsu Branch, which is expected to re-enter as early as 2027, is also anticipated to be reborn as a future-oriented store with similar symbolic significance.

Emart plans to continue developing regional and commercial district flagship stores into such future-oriented stores while restructuring unprofitable stores. This is based on the statement by Emart CEO Kang Hee-seok at the regular shareholders' meeting on the 29th of last month, emphasizing that "investment will be made in stores capable of generating results, and selective renovations will be conducted according to the role of each store." Through restructuring, Emart plans to reduce directly managed store areas, increase leased stores to optimize manpower, and enhance store space productivity.

Exterior view of Emart Seongsu branch [Photo by Emart].

Acceleration of Strategic Reallocation of Group Assets

The sale of Emart headquarters was aimed at securing investment funds following the acquisition of an 80% stake in eBay Korea (now Gmarket) for 3.4 trillion KRW to strengthen e-commerce. Emart explained that the headquarters sale is part of a 'strategic reallocation of group assets.' This involves increasing asset value by developing aging stores into future-oriented stores and securing investment funds for transitioning into a digital company through asset liquidity.

Since 2019, Emart has actively pursued asset reallocation under this policy. In 2019, Emart sold 13 stores, securing 952.5 billion KRW. In 2020, it sold the Magok site for 815.8 billion KRW, and in 2021, it sold Emart Gayang Branch for 682 billion KRW. Last year, it also sold its stake in Shinsegae Life Shopping to Shinsegae Department Store for 141.8 billion KRW. Emart plans to continue following this policy. An Emart official stated, "Some stores will be downsized by selling and then leasing back, and the funds secured through this will be used to increase value through conversion to future-oriented stores and to strengthen future businesses."