Shinsegae, August Sales 137.2 Billion Won...8.52% Decrease
Expecting Base Effect Easing and Chuseok Impact from September
Strengthening 'Young Category' Led by Gangnam and Centum Stores
Shinsegae Department Store is focusing on the 'Young' category that attracts the 2030 generation as the key to reversing this year's performance. By leading with K-fashion designer brands popular among the financially capable 2030 generation, Shinsegae is renovating its MZ generation (Millennials + Generation Z) specialty stores to attract customers of various age groups.
Customers are shopping at the Imis store located in the 'New Street' area on the 8th floor of the main building at Shinsegae Department Store Gangnam Branch. [Photo by Shinsegae].
According to the Financial Supervisory Service's electronic disclosure on the 12th, Shinsegae's sales in August reached 137.2 billion KRW, down 8.52% compared to the same period last year. Total sales during the same period also decreased by 5.56% to 367.9 billion KRW.
The department store experienced over 20% high growth in August last year. This was due to the earlier Chuseok holiday on September 10 last year, which caused a shift in peak sales timing. From this month, they expect solid positive growth. With October 2 designated as a temporary holiday, and by utilizing annual leave during the Chuseok holiday (September 28?30), National Foundation Day, and Hangul Day, customers can have up to 12 consecutive days off, which is expected to fully activate the 'Chuseok holiday consumption effect.' Since last year's performance base sharply dropped after September, expectations for a performance rebound are gaining momentum.
During this period, Shinsegae is promoting the 'Young Street' at its major nationwide stores. While the luxury category, which has a high average spending per customer, has seen sluggish growth of 1?2% this year, Shinsegae plans to attract customers of various age groups through the renewal of the Young category. In particular, they aim to boost second-half performance by introducing a large number of emerging young fashion brands at key stores, including Gangnam, the top department store in domestic sales.
The 8th floor of the main building at Shinsegae Gangnam Store reopened on the 8th after about two months of renovation as the 'New Street.' It is the first in the industry to introduce domestic street brands Birthday Suit and Woalrong, and also opened Korea's first department store multi-brand shop gathering brands favored by young consumers such as Eight Division and Project. At the Project store, customers can also find Stussy, a leading global streetwear brand.
In February, the Busan Centum City Store's Hyperground was reopened as an 'MZ specialty store,' attracting young customers by introducing popular brands among the 2030 generation such as Already, Pottery, and InstantFunk. Since the Hyperground renovation, the number of 2030 customers at Centum City increased by 101% and 87% respectively compared to the same period last year over six months. The number of customers from outside Busan also increased by 60%.
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