Hyundai Department Store Outlet, 10x Sales Growth in 10 Years..."Business Expansion"

New Store Openings Including the Second Connect Hyundai Location

Hyundai Department Store announced on the 24th that it will strengthen its business competitiveness through new store openings and store renewals to mark 10 years of entering the outlet market and embark on a second leap forward.

Hyundai Premium Outlet Gimpo Branch Super Stage Concert Site. Provided by Hyundai Department Store

Hyundai Department Store plans to open the second Connect Hyundai store in Cheongju, Chungbuk in the first half of this year, and in 2027, it will introduce a future-oriented retail platform based on a premium outlet in Busan Metropolitan City. Recently, it also succeeded in bidding for the largest premium outlet site in the region within the Gyeongsan Knowledge Industry District in Gyeongsan, Gyeongbuk. The outlet is scheduled to open in 2028, contributing to the revitalization of the Daegu and Gyeongbuk regional economy.

The company is also actively working to strengthen the competitiveness of existing stores. Hyundai Premium Outlet Gimpo will renew its central waterway this year by introducing an ‘Ion Heating System’ to enable year-round operation. The Songdo store will expand its basement level 1 MZ (Millennial + Generation Z) specialty zone, and Space One plans to newly open trendy brands such as SPA in Building B. Hyundai City Outlet Dongdaemun will accelerate targeting global customers based on its high proportion of foreign sales, and the Garden Five store will continue to develop and introduce new experiential content aimed at family customers.

Previously, Hyundai Department Store entered the outlet business by opening its first premium outlet, Hyundai Premium Outlet Gimpo, near Ara Gimpo Passenger Terminal in Gimpo, Gyeonggi Province, on February 27, 2015. Subsequently, it sequentially opened Hyundai City Outlet Dongdaemun (March 2016), Hyundai Premium Outlet Songdo (April 2016), and Hyundai City Outlet Garden Five (May 2017), currently operating a total of eight stores including four premium outlets and four urban outlets. Last year, it launched ‘Connect Hyundai,’ a new concept shopping mall combining the strengths of department stores and outlets, debuting in Busan Metropolitan City, continuously expanding its business.

Hyundai Department Store’s outlet sales have also sharply increased over the past 10 years. Annual sales in the first year of entering the outlet business in 2015 were around 300 billion KRW, but last year recorded 2.8 trillion KRW, growing nearly tenfold. This year, the goal is to surpass 3 trillion KRW. Hyundai Department Store attributes the success of its outlet business to industry paradigm-changing factors such as ▲cultural and artistic content ▲geographical advantage close to urban areas ▲‘Big-Blur’ strategy that breaks down boundaries between shopping mall formats.

The first outlet, Hyundai Premium Outlet Gimpo, is a representative shopping and cultural landmark in the metropolitan area visited by more than 10 million customers annually. It is differentiated as an exotic ‘luxury resort-style outlet’ reminiscent of the Mediterranean coast. The 450-meter-long central waterway running through Gimpo allows customers to leisurely stroll year-round and enjoy unique scenes such as fireworks viewing with a view of the Han River. Songdo and Space One collaborate with world-renowned artists like Jean-Julien and Jaime Hayon to present sophisticated cultural and artistic spaces that attract customers. City outlets located in urban shopping towns such as Dongdaemun and Garden Five have also specialized as spaces where shopping and leisure are enjoyed together by strengthening community facilities such as cultural centers and kids’ cafes.

Being located close to urban areas is also a strength. Half of the sales at the four Hyundai Premium Outlets, including Gimpo, occur on weekdays from Monday to Friday, indicating a high weekday sales ratio. Unlike existing premium outlets mainly located in distant suburbs, these outlets are accessible within about an hour by car from urban areas, and uniquely operate food halls and deli corners at department store levels, absorbing demand from office workers and grocery shoppers after work, according to the company’s analysis.

Introducing a ‘hybrid outlet’ that combines the advantages of suburban outlets and indoor shopping malls has also been positive. Hyundai Department Store installed folding doors and heating, ventilation, and air conditioning (EHP) systems along customer pathways in all four premium outlets including Gimpo. When the weather is good, the folding doors open to operate like traditional suburban premium outlets where customers can enjoy both strolling and shopping, and when the weather is bad, the folding doors close to transform the space into an indoor shopping mall.

A Hyundai Department Store official said, “Preparations are underway to apply a new BI (brand image) for the first time in 10 years as early as the first half of this year,” adding, “We will redesign Hyundai Outlet’s unique content from the ground up in terms of customer experience and set a new milestone once again in the rapidly changing distribution market.”