Shinsegae Department Store Gangnam, First Single Store in Korea to Surpass 2 Trillion KRW Annual Sales

Exterior view of Shinsegae Department Store Gangnam Branch

[Asia Economy Reporter Cha Min-young] Shinsegae Department Store announced on the 7th that the cumulative sales of its Gangnam branch surpassed 2 trillion won last year. This is the first time a single department store in Korea has exceeded annual sales of 2 trillion won.

Shinsegae Gangnam, which opened in 2000, surpassed 1 trillion won in sales in 2010, just 10 years after opening, and has now broken through the 2 trillion won barrier. After the expansion of the new building and store renovation in 2016, the sales area increased from about 16,800 pyeong to 26,200 pyeong, leading to rapid sales growth.

Shinsegae analyzed that the increase in foreign tourist visits, as the Gangnam branch shares its commercial area with downtown duty-free shops and nearby luxury hotels, also contributed to the sales rise. Last year, foreign customers visiting the Gangnam branch came from 46 countries, including China, Taiwan, and Russia.

Comparing June 2018, before the opening of Shinsegae Duty-Free Shop, and December last year, foreign sales at the Gangnam branch grew by 90%. In particular, foreign sales in the luxury goods category increased by 200% compared to before the duty-free shop opened, and sales of high-end watches rose by 600%.

Shinsegae also analyzed that being the first in the industry to adopt a 'specialty hall' strategy positively influenced growth. While traditional department stores have organized stores mainly by brand, since the 2016 renovation, the Gangnam branch has been arranged as an experiential store focused on product categories. For example, previously, customers had to visit multiple brand stores separately to buy pots, but in the Gangnam branch’s lifestyle specialty hall, pots from all brands are displayed in one place.

The Gangnam branch’s luxury sales ratio is more than four times higher than the overall average of Shinsegae Department Store, making it a place where CEOs of overseas luxury brands visit to understand Asian trends.

Cha Jung-ho, CEO of Shinsegae Department Store, said, "The Gangnam branch, the first in Korea to achieve annual sales of 2 trillion won, has now established itself as a global department store beyond Korea," adding, "We will continue to solidify our position as Korea’s 'landmark department store' sought after not only domestically but also by global trendsetters."

This content was produced with the assistance of AI translation services.