Shinsegae Department Store Centum City Surpasses Annual Sales of 2 Trillion Won for 2 Consecutive Years

Achieved Annual Transaction Volume of 2 Trillion Won Ten Days Early... First Regional Store to Join the '2 Trillion Club' for Two Consecutive Years

"Will Become a Global Destination"... Increasing Entertainment and Strengthening VIP Facilities Next Year

Shinsegae Department Store Centum City surpassed annual sales (transaction amount) of 2 trillion won on the 21st of this year.

Despite the challenging operating environment for department stores outside the metropolitan area due to population decline and frozen consumer sentiment, it has continued high growth and became the first department store outside Seoul to join the ‘2 Trillion Club’ for two consecutive years.

As a regional store, Shinsegae Centum City, which was the first in Korea to record annual transaction amounts of 1 trillion won in 2016 and 2 trillion won last year, surpassed 2 trillion won again this year, ten days earlier than last year, rewriting the history of regional department stores.

Shinsegae Department Store Centum City.

▲ The Sanctuary of ‘K-Brand’ Experience... Resonated with Both Domestic and International Customers

Shinsegae Centum City saw a 253% increase in foreign customers by December 21 this year compared to the same period last year. Last year, it recorded the highest foreign sales growth rate (668%) among all Shinsegae Department Store branches, and this year it tripled that growth.

Since last year, the creation of MZ fashion specialty zones targeting young customers in their 20s and 30s, such as ‘Hyperground’ and the ‘New Contemporary Specialty Zone,’ significantly revamped the store composition with K-fashion and beauty brands. This effectively broadened foreign sales, which had been focused on overseas luxury brands, to domestic brands.

Hyperground and the New Contemporary Zone are spaces that gathered promising K-fashion brands, including the first department store stores of domestic emerging brands like ‘Pottery’ and ‘Imiss,’ which previously sold products only online. This year, new brands such as ‘Lowraw,’ ‘No Manual,’ ‘Setter,’ and ‘Teal Dye’ were additionally introduced, continuously bringing changes.

Receiving positive responses from both domestic and international customers, Hyperground’s sales increased by 49%, and the New Contemporary Zone’s sales rose by 23.3% compared to the previous year as of December 21. Notably, 20 brands including ‘Imiss,’ ‘Marithe Francois Girbaud,’ and ‘Pottery’ each recorded monthly average sales exceeding 100 million won, demonstrating performance comparable to famous overseas brands. New customers visiting Hyperground and the New Contemporary Zone increased by 24% year-on-year, and customers from outside Busan also grew by 10%.

Besides K-fashion, K-beauty brands such as ‘Tamburins’ and ‘Nonfiction,’ which entered in the last three years (34% sales increase year-on-year), and jewelry categories centered on domestic brands like ‘Honest Seoul’ (119%) also gained popularity among domestic and international customers, driving high growth.

▲ Strengthening Competitiveness from Entertainment to Luxury Next Year... ‘Global Destination’

Shinsegae Centum City, with the world’s largest size (293,905㎡), an overwhelming area, global luxury brands, and various leisure facilities, plans to continue its growth by diversifying new brands and entertainment options next year.

Starting with the newly opened ‘Sports Shoe Specialty Zone’ on the 20th of this month, new F&B stores and entertainment spaces such as ‘Fun City’ and ‘Play in the Box,’ where visitors can enjoy experiences, leisure, and relaxation, will be introduced in the first half of next year.

Next year, when the number of foreign visitors is expected to recover to pre-COVID levels, shopping convenience for foreigners will be improved by enabling tax refund procedures directly at 80 stores, mainly domestic brands like ‘Tamburins’ and ‘Gentle Monster.’

Premium competitiveness will also be strengthened by improving and expanding VIP facilities and expanding luxury brands. Shinsegae Centum City’s VIP sales have grown 73% over the past five years, significantly outpacing the 43% growth in general customer sales.

In the first half of next year, a VIP lounge called ‘Upper House’ (for customers who purchased over 120 million won the previous year), currently only available at the Gangnam branch, will be newly established, and within the next three years, existing VIP lounges and Personal Shopping Rooms (PSR) will be comprehensively expanded and renovated.

Kim Seon-jin, Vice President and Head of Sales at Shinsegae Department Store, said, “Shinsegae Centum City has pioneered the path for regional department stores and already demonstrates global competitiveness beyond nationwide scope,” adding, “It will become not only a ‘must-visit course’ in Busan but also a shopping and experience destination for domestic and international customers.”