"We're Vacating Now": Struggling Premium Women's Brands... What Will Fill the Second Floor of Department Stores?

On and On, G Cut and Other Traditional Brands Exit Department Stores
Street Fashion Takes Over Department Store Floors
Shift in Consumption to Designer Brands for Women in Their 20s to 40s
Brands Seek Survival Through Renewal and Expanded D

Premium women's fashion brands are vacating their spaces in department stores due to sluggish sales. The vacancies left by these traditional women's wear brands are being filled by designer brands that have grown through fashion platforms. This shift is driven by the prolonged economic downturn, which has increased demand for designer brands targeting women in their 20s to 40s, rather than high-priced fashion brands.

According to the department store industry on October 7, Lotte Department Store's Incheon branch is undergoing a complete renewal of its second-floor women's section, which was previously occupied by women's fashion brands, transforming it into an imported and contemporary fashion hall. Some of the brands previously located on the second floor are being moved to the third floor, which houses children's, infant's, women's, young fashion shoes, and handbags, while the second floor will be reconfigured with imported brands and domestic contemporary brands such as Maison Kitsune, Polo Ralph Lauren, Time, Kuho, and Lanvin Collection.

The second floor of Lotte Department Store Incheon Branch undergoing renewal. Photo by Minji Lee.

In this process, Lotte Department Store has ended contracts with domestic women's fashion brands that targeted women in their 20s to 40s. The brands that have closed their operations include 'Illail', 'G Cut', and 'It Misha' operated by Shinsegae International; 'Claudie Pierlot' by IDLOOK; 'Ero' by Kolon FnC; 'SJYP' by Handsome; 'Line Edition' by Samsung C&T; 'Zigott' by Baba Fashion; and 'On and On' by Boccre Merchandising. These brands have represented the women's fashion floor in department stores.

The main reason these brands have withdrawn from department stores is declining sales. The economic downturn has led to reduced spending on fashion, with domestic premium women's brands being hit the hardest. As consumer spending has polarized between the highest-priced premium products and value-for-money items, mid-priced women's wear has been increasingly neglected.

Additionally, the rapid growth of domestic designer brands such as Hago House (Matin Kim, Trimming Bird, Depound), Marithe Francois Girbaud, and Saeter has further narrowed the market share for domestic premium women's fashion brands.

For example, the number of department store locations for G Cut, a women's fashion brand operated by Shinsegae International, decreased from 66 in the first half of last year to 62 this year. Vov also dropped from 90 to 89 stores, and Studio Tomboy from 119 to 110. Overall sales have also declined; the combined department store sales of these three brands in the first half of this year totaled 90.5 billion won, a decrease of 10 billion won compared to last year’s 107.1 billion won.

A representative from one brand stated, "It is true that the women's fashion market is struggling," and added, "As consumer behavior has changed significantly, we are considering brand renewal and changes in our distribution network." The strategy is to expand sales channels from department stores, outlets, and their own malls to fashion platforms.

Designer brands are filling the void left behind. A representative from this department store said, "Sales in the women's section have not been good for a long time. With the decision to renew, brands with poor sales had to leave, and the remaining brands are now grouped with young fashion brands, making competition even fiercer."

A view of the Kinetic Ground on the 2nd floor of Lotte Department Store located in Jamsil-dong, Songpa-gu, Seoul. Provided by Lotte Department Store.

Department stores are also focusing on discovering and bringing in new designer brands. Lotte Department Store has established Kinetic Ground, a specialty hall for domestic designer brands, in its key locations such as the Sogong-dong main store and Jamsil branch. Shinsegae Department Store has introduced young fashion specialty halls at its Centum City and Uijeongbu branches. Hyundai Department Store, which was the first in the industry to bring in designer brands through The Hyundai Seoul, is actively attracting not only domestic designer brands but also overseas designer and street brands that are popular in the global market.

The composition of fashion brands in department stores is also expected to change. An industry insider explained, "More unique brands will appear in department stores, especially among the younger generation such as those in their 20s and 30s. Looking at designer brand products, the boundaries between men's and women's fashion are also blurring, so the proportion of unisex items is likely to increase."