Ahead of Starfield Suwon Year-End Opening
Business Agreement with Suwon City and Gyeonggi Credit Guarantee Foundation
Lotte Mall Also Partners with Suwon Cultural Foundation
"Plan to Continue Local Marketing Efforts"
As of August 2023, the largest complex shopping mall in Suwon City, Gyeonggi Province, is considered to be Lotte Mall Suwon. It has three basement floors, eight above-ground floors, and a total floor area of 234,000㎡, housing a department store, a mart, a shopping mall, and a cinema. Since its opening in November 2014, it has consistently been regarded as the largest shopping town in Suwon. However, recently, there have been observations that the dominant position of Lotte Mall Suwon is beginning to experience a significant shift. At the center of this change is the Shinsegae Group’s complex shopping mall, 'Starfield Suwon,' which aims to open by the end of this year.
An aerial view of Suwon Starfield, covering a total floor area of 331,000㎡, located at 111 Jeongja-dong, Jangan-gu, Suwon. It is scheduled to be completed and opened by the end of this year. [Photo by Shinsegae Property]
Within the local commercial district, it is already expected that Starfield Suwon’s impact will overwhelmingly surpass that of Lotte Mall Suwon. A representative from a local merchants’ association stated, "Considering the brand power of Starfield, the ripple effect it will have on the local commercial district is expected to be more than twice as large as that of Lotte Mall Suwon." This is also true in terms of scale. Starfield Suwon is being constructed to be 100,000㎡ larger than Lotte Mall Suwon, with a total floor area of 331,000㎡, eight basement floors, and eight above-ground floors.
Lotte Mall Suwon is also visibly tense about the arrival of Starfield. Analysts say this is closely related to the department store’s plan for a major renewal in the second half of this year. The fact that the sites of Lotte Mall Suwon and Starfield Suwon are less than 2 km apart, and that Shinsegae is a retail rival of Lotte, further supports this analysis.
Recently, Lotte Mall Suwon and Starfield Suwon have been fiercely competing in local marketing. Their blueprint is to create synergy effects by establishing friendly relationships with various local institutions. Starfield Suwon took the lead by signing a business agreement last month with Suwon City and the Gyeonggi Credit Guarantee Foundation to create jobs and support small business owners. In addition, Starfield has also signed win-win agreements with the Southern Gyeonggi Supermarket Association and the Suwon Small Business Federation.
Lotte Mall Suwon appears to be strengthening its local marketing efforts in response to Starfield Suwon’s moves. At the end of last month, it signed a business agreement with the Suwon Cultural Foundation for the "Creation of a Cultural City Suwon and Regional Win-Win." A Lotte representative said, "Although nothing has been finalized since the agreement with the Suwon Cultural Foundation, we plan to continue promoting local marketing." This signals a forthcoming 'off-site showdown' between the two companies.
Meanwhile, it has been reported that Starfield Suwon has yet to sign a win-win agreement with the Suwon City Merchants Association, which is necessary for its opening. If the agreement is delayed, the opening could be postponed indefinitely. According to the current Distribution Industry Development Act, large-scale stores like Starfield must submit a regional cooperation contract based on a win-win agreement with local merchants to the local government. A Shinsegae Property official involved in the Starfield Suwon project stated, "We are continuing dialogue with the Suwon City Merchants Association with an open attitude and sincerity to ensure coexistence with the local economy and residents."
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