Number of Department Stores Surpassing 1 Trillion Won in Sales Rises from 12 to 13
Shinsegae Gangnam and Lotte Jamsil Lead the Pack as Hyundai Pangyo Makes Strides
Driven by Luxury Consumption, Five Department Stores Join the "2 Trillion Club"
Despite the economic downturn this year, department stores located in key commercial districts across the country have continued to break sales records. The number of department stores with annual sales exceeding 1 trillion won reached a record high of 13, and new members have joined the so-called "2 Trillion Club." Robust demand for luxury goods, especially watches and jewelry, as well as merchandise planning (MD) strategies tailored to each store's target customers, are seen as key drivers behind these results.
According to the retail industry on December 29, a total of 13 department stores surpassed 1 trillion won in sales this year. Shinsegae Art & Science in Daejeon exceeded the 1 trillion won mark for the first time, increasing the number of "1 Trillion Club" stores by one compared to last year. The number of department stores achieving 1 trillion won in sales is the highest ever, and the pace of reaching this milestone was also faster than last year. By retailer, there were five Shinsegae stores, four Hyundai Department Store locations, three Lotte Department Store branches, and one Galleria store.
Shinsegae Art & Science in Daejeon surpassed 1 trillion won in sales just four years after opening. The store's strategy of establishing a premium image by attracting luxury watch and jewelry brands such as Vacheron Constantin, Jaeger-LeCoultre, IWC, and Boucheron since its opening is considered to have played a decisive role.
The most notable change this year was the remarkable performance of Hyundai Department Store Pangyo branch. With Pangyo branch newly joining the 2 Trillion Club, the number of department stores with annual sales exceeding 2 trillion won increased to five. Pangyo branch grew by approximately 16% compared to last year's sales of 1.73 trillion won, surpassing 2 trillion won in sales as of December 27. This achievement came 10 years and 4 months after opening, making it the fastest among domestic department stores to reach 2 trillion won in sales.
The growth of Pangyo branch is attributed to its aggressive MD strategy centered on luxury brands. Since opening in 2015, the store has attracted major luxury brands such as Louis Vuitton, Cartier, Tiffany, Bulgari, and Piaget. After reaching 1 trillion won in annual sales in 2020, it continued to introduce top-tier luxury brands to the Gyeonggi region for the first time, including Hermes (2022), Graff and Dior (2023), and Rolex and Goyard (2025). Currently, Pangyo branch boasts the largest number of luxury brands among Hyundai Department Store locations, with 96 brands.
The store's focus on customer experience innovation through experiential content has also been positive. Since its opening, Pangyo branch has adopted the concept of "selling experiences," shifting the paradigm of offline retail from "shopping" to "experience." The "Hyundai Museum of Kids' Books & Art (MOKA)," which is uniquely operated among domestic department stores, is a prime example.
Shinsegae Department Store Gangnam branch and Lotte Department Store Jamsil branch, both maintaining their status in the "3 Trillion Club," also reached their annual targets ahead of schedule this year. Shinsegae Gangnam branch, the top-selling department store in Korea, surpassed 3 trillion won in sales in November, reaching its sales goal about three weeks earlier than last year. As the store houses the largest collection of luxury boutiques in the country, there is speculation that it could reach 4 trillion won in sales next year. Shinsegae Centum City in Busan, which is already part of the 2 Trillion Club, also surpassed 2 trillion won in sales by the end of November, achieving its target about a month earlier than last year.
Lotte Department Store Jamsil branch also surpassed 3 trillion won in sales for the second consecutive year on December 4, reaching the milestone about three weeks earlier than last year. Since joining the 2 Trillion Club in 2021, Jamsil branch has maintained an average annual growth rate of around 15% for five consecutive years. Lotte Department Store Main branch also recorded 2 trillion won in sales on December 6, showing faster growth than last year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
