Shinsegae Also 'Joins the Battle'... Gyeonggi Nambu, the Biggest Battleground in Retail

Starfield Suwon Opens on the 26th... Total Floor Area 100,000 Pyeong
Next Month, Lotte Department Store Suwon Branch Soft Reopening After Renovation
Counterattack in Southern Gyeonggi Department Store Renovations to Retain Customers

With the official opening of Starfield Suwon, a complex shopping mall affiliated with Shinsegae Group, the southern Gyeonggi region has emerged as the biggest battleground in the retail industry. AK Plaza and Lotte Department Store, long-established players in the Suwon area, have undergone major renovations to face off, while Galleria Gwanggyo, Shinsegae Gyeonggi, and Hyundai Department Store Pangyo have also revamped their stores, signaling fierce competition to attract customers.

Shinsegae Property, an E-Mart affiliate, announced on the 24th that it will open Starfield Suwon on the 26th. Located in Jeongja-dong, Jangan-gu, Suwon City, this mall spans eight basement floors and eight above-ground floors, with a total floor area of 331,000㎡ (approximately 100,000 pyeong), making it the largest complex shopping mall in the Suwon area with parking capacity for up to 4,500 vehicles simultaneously.

Gyeonggi Southern Region's Largest Shopping Mall 'Starfield Suwon' Grand Opening

Starfield Suwon is a new shopping mall opening 3 years and 4 months after Starfield Anseong opened in October 2020. While the existing Starfield malls were family-oriented 'first-generation complex shopping malls,' this one has evolved into a 'second-generation Starfield' that significantly strengthens specialized stores targeting the MZ generation (Millennials + Generation Z).

The 'Byeolmadang Library,' first introduced at Starfield COEX Mall in Gangnam, Seoul, will be featured in Starfield Suwon. It is the first large-scale library in the metropolitan area outside Seoul. Additionally, popular select shops and fashion brands that have gained popularity in trendy areas like Seongsu-dong and Hongdae have been brought in, along with sought-after 'open-run' eateries. Lim Young-rok, CEO of Shinsegae Property, said, “Starfield Suwon is the first 'Starfield 2.0' mall designed for the MZ generation, where high-sensitivity brands and services that were previously scattered sporadically in Seoul can now be experienced in one space. It maximizes customer experience by allowing visitors to fully enjoy their tastes, hobbies, and brand identities.”

Starfield Suwon leverages its strategic location in the southern metropolitan area to actively attract not only 1.2 million Suwon residents but also the 5 million people living within a 15 km radius in neighboring cities.

Starfield Suwon Emerging as a Shopping Black Hole... Nearby Malls on High Alert

With the opening of Starfield Suwon, nearby shopping destinations are on high alert. Lotte Department Store, operated by Lotte Shopping, has partially completed renovations of its Suwon branch since October last year and plans a soft opening next month. Lotte Department Store Suwon is a hybrid of a department store and mall, spanning from basement level 1 to the 8th floor above ground, with a total floor area of approximately 234,710㎡ (71,000 pyeong). This is its first renovation since opening in 2014, focusing on leveraging the strengths of both the department store and mall to attract customers across various age groups. The official reopening is scheduled for April.

The renovation concept can be summarized as 'premium' for the department store and 'playground for the MZ generation' for the mall. Lotte Department Store has relocated seven brands popular among young customers, such as MLB, Kangol, and Guess, to the mall and opened 11 youth brands, completing a mall targeting the MZ generation. Meanwhile, the premium identity of the department store has been further enhanced. For the first time in Suwon, large-scale kids-only stores like New Balance Kids and Nike Kids have been introduced, with plans to strengthen luxury and beauty sections.

The rapid renovation by Lotte Department Store was prompted by the opening of Starfield Suwon. As the largest shopping complex in the southern Gyeonggi area opens, Lotte Department Store has taken a strategic move with its renovation. AK Plaza, located at Suwon Station alongside Lotte Department Store, also completed renovations ahead of schedule. Since Starfield is located at Hwaseo Station on Line 1, just before Suwon Station, it poses a threat to these department stores. Although Starfield Suwon is not directly connected to Hwaseo Station, it is right across the subway exit and surrounded by thousands of apartment complexes, making its location favorable.

Starfield is not only attracting attention from Suwon residents but also from Gyeonggi Province residents, which adds to the tension among nearby department stores. Suwon City is home to Lotte Department Store Suwon, Starfield Suwon, AK Plaza Suwon, and Galleria Gwanggyo, as well as Hyundai Department Store Pangyo and Shinsegae Gyeonggi, all located in close proximity. Including Lotte Department Store Dongtan in Hwaseong City, there are a total of seven shopping complexes.

Seven Department Stores and Shopping Malls Near Suwon... Intense Competition

In Gyeonggi Province, luxury shopping is typically done at Hyundai Department Store Pangyo, Shinsegae Gyeonggi, or in the Gangnam area of Seoul, while non-luxury items are purchased at nearby shopping malls. Suwon City sees an annual floating population of 120 million, and especially in the southern Gyeonggi area, where young professionals with high purchasing power and employees of major corporations like Samsung Electronics, Hyundai Motor, and SK reside, competition among retailers to attract customers is expected to intensify.

Vice Chairman Jeong Yong-jin visited Starfield Suwon on the 15th for an on-site inspection.
[Photo by Shinsegae Group]

Galleria Gwanggyo, located about a 20-minute drive from Starfield Suwon, is preparing by setting up dedicated pop-up store spaces and operating sports-specialized stores. Galleria Gwanggyo is situated in the center of Gwanggyo New Town, flanked by Suwon Convention Center and Aqua Planet. It is also close to Woncheon Lake, making it a popular spot for families with strollers on weekends as well as trend-sensitive MZ generation customers.

Since Starfield Suwon has strengthened its kids' content and fashion brands targeting the 20s and 30s age group, Galleria Gwanggyo may experience customer attrition. In response, Galleria Department Store plans to open the Swiss watch brand 'Longines' next month and aims to attract additional luxury brands such as Dior and Gucci in the second half of the year. Furthermore, starting next month, a coffee specialty store 'Blue Bottle' will open a pop-up, and in March, a dedicated pop-up store space will be established. Last month, they also launched a 200-pyeong Nike megastore called 'Well Collective.'

Shinsegae Department Store Gyeonggi, which has competed with Galleria Gwanggyo, has focused on strengthening its 'luxury' image. Although Gyeonggi is the oldest department store in the southern Gyeonggi area, it is highly regarded for its luxury stores such as Louis Vuitton, Gucci, and Prada. On the 26th, it will introduce 2 to 3 new men's luxury stores to bolster its men's luxury segment. A Shinsegae Department Store official summarized, "We will continue renovations this year. While Starfield and others focus on mass fashion, Gyeonggi's symbolic strength lies in luxury."

Hyundai Department Store Pangyo, the leader in Seoul and central and southern Gyeonggi areas, plans to continue double-digit growth this year by strengthening luxury fashion brands and operating pop-up stores. In terms of sales, Shinsegae and Galleria each generate around 600 billion KRW annually, while Hyundai Department Store exceeds this by 1 trillion KRW. Hyundai Department Store Pangyo, which houses Hermes and Louis Vuitton, is the most promising department store in Korea in terms of growth potential.

Last year, Hyundai Department Store Pangyo renovated and reopened its second-floor overseas fashion specialty hall, and in the first half of this year, about 10 additional luxury brands are scheduled to open. The space next to the Dior women's hall on the first floor is used for pop-up stores, which is likely to accelerate the influx of customers in their 20s and 30s. A Hyundai Department Store official explained, "It is well known among foreign brands that the southern Gyeonggi commercial district will continue to grow. The improvement of transportation, such as new roads, is also a positive factor."