Achieved 1.041 trillion KRW in sales as of the 2nd... 2 years and 9 months since opening
Jung Ji-young: "Offline rediscovery... Retail paradigm shift"
Hyundai Department Store The Hyundai Seoul surpassed annual sales of 1 trillion won just 2 years and 9 months after its opening. This is the shortest period among domestic department stores.
Hyundai Department Store announced on the 3rd that The Hyundai Seoul achieved cumulative sales of 1.0041 trillion won this year (January 1 to December 2), becoming a '1 trillion won annual sales store' 33 months after its opening on February 26, 2021. This broke the previous record by 2 years and 2 months.
Jung Ji-young, President of Hyundai Department Store, said, "The Hyundai Seoul has broken the perception of department stores as mere shopping spaces, presenting a new paradigm in retail such as 'rediscovery of offline' and 'maximizing the value of spatial experience,' establishing itself as a representative landmark of Korea." He added, "The global-level MD capabilities, efforts to discover fresh content such as K-fashion brands exclusive to The Hyundai Seoul, and the resulting increase in average spending per customer were key factors in achieving the 1 trillion won milestone in the shortest time."
Foreign MZ Generation Also 'Bustling'
Despite the prolonged COVID-19 pandemic and economic downturn, the achievement of 1 trillion won in sales was greatly influenced by The Hyundai Seoul emerging as a 'must-visit course' not only for domestic visitors nationwide with the advent of the endemic but also among foreigners. Foreign sales at The Hyundai Seoul increased by 731.1% in 2022 compared to the previous year, and rose by 891.7% from January to November this year. This is nearly three times the average growth rate of foreign sales across all Hyundai Department Store branches (305.2%). Among foreign customers at The Hyundai Seoul, those in their 20s and 30s account for 72.8%.
The strategy leveraging K-culture was effective in attracting foreign visitors. This year alone, The Hyundai Seoul consistently hosted pop-up stores related to top idol groups such as BTS (March), LE SSERAFIM (May), IVE (June), ITZY (August), and BLACKPINK (September). As the MZ generation flocked to The Hyundai Seoul, overseas companies seeking to benchmark its operational experience have continued to visit. Since July, the 'The Hyundai Seoul Benchmarking Tour Program' for foreigners has welcomed CEOs and executives from various global companies across industries, including department stores and shopping malls such as Lumine and Hankyu (Japan), El Palacio de Hierro (Mexico), Siam Paragon (Thailand), as well as Nestl? (Switzerland), General Mills (USA), and Porsche (Germany).
Differentiated MD Competitiveness
In the new normal era, The Hyundai Seoul judged that offline retail should differ from purpose-driven consumption spaces where customers merely buy goods and leave. It dedicated half of its total sales area (89,100㎡) to indoor landscaping and customer rest areas, implementing a ceiling design that allows natural light to enter, creating an unprecedented 'retail therapy (healing through shopping)' space.
From its second year, it led sales growth by showcasing differentiated MD. By strategically attracting 'first department store stores' of online-based fashion brands popular among the 2030 generation such as Matin Kim and SIE, sales centered on young fashion grew rapidly. SIE is approaching annual sales of 10 billion won, and Matin Kim has grown into a K-fashion icon maintaining a top position among foreign customers' purchases. The proportion of food sales, which was 19.1% in the first year, gradually decreased to 16.5% in 2022 and 13.2% this year, while young fashion sales rose from 6.2% in 2021 to 10.3% in 2022 and 13.9% this year, surpassing food sales. The share of young fashion sales at The Hyundai Seoul is overwhelmingly higher compared to the average of all Hyundai Department Store branches excluding The Hyundai Seoul (8.2%).
This led to an increase in average spending per customer. The average spending per customer at The Hyundai Seoul was 87,854 won in 2021, rising to 93,400 won last year and 101,904 won this year. The growth rate of average spending per customer this year compared to the previous year was 9.1%, exceeding the average growth rate across all Hyundai Department Store branches (+1.1%). Overseas luxury brand sales, which have grown by 20% annually, accounted for 25.6% of total sales this year, supporting the upward trend in average spending. Excluding food, The Hyundai Seoul's average spending per customer ranks third among Hyundai Department Store branches in Seoul, following Apgujeong Main Store and Trade Center Store.
As a K-Fashion Incubator
The Hyundai Seoul is also recognized for setting a new standard for expanding the K-fashion ecosystem. At opening, it was the first in the industry to house brands that had only sold online such as Koor and Thisisneverthat, and has continuously introduced emerging brands like MISCHIEF, SETTER, and DEFOUND, with over 200 native Korean brands entering offline retail through The Hyundai Seoul to date.
To foster growth in the K-fashion market, Hyundai Department Store has completely revamped its store entry verification process, which previously focused on stable operational performance such as sales and network, prioritizing brand distinctiveness, product quality, and potential growth to discover promising brands. It also provides tailored consulting support for each brand. Total fashion sales (young fashion, women's fashion, men's fashion) have rapidly increased. This year, fashion sales at The Hyundai Seoul surged 113.2% compared to the first year of opening, recording the highest sales proportion (23.1%) since its opening.
A Hyundai Department Store official said, "Louis Vuitton is scheduled to open by the end of the year, and various new MD models such as exclusive stores developed in collaboration with global brands will be introduced, so we expect further sales growth." He added, "We will upgrade The Hyundai Seoul to a world-class hot place for the MZ generation (Millennials + Gen Z) and a space that opens a new horizon for luxury."
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