Hyundai Department Store Unveils Korea's First 'IKEA Urban Store'

View of the New York IKEA Planning Studio. (Photo by Hyundai Department Store)

[Asia Economy Reporter Seungjin Lee] Hyundai Department Store announced on the 31st that it will open the doors of 'IKEA Planning Studio Cheonho' on the 9th floor Living Hall of Cheonho Branch on the 30th of next month. It is the first domestic 'IKEA' urban-type store.

The ‘IKEA Planning Studio’ is a small-scale urban store operated by IKEA, characterized by experts with professional knowledge and service capabilities in home furnishing who provide consultations on spaces such as bedrooms, living rooms, and kitchens. Although there are cases of being located in overseas shopping malls, it is very unusual to be located inside a department store like this. The store size is 506㎡ (about 153 pyeong), more than 10 times larger than a typical living brand store.

The ‘IKEA Planning Studio Cheonho’ opening at Cheonho Branch will be decorated with a total of five room sets (showrooms), including bedrooms and kids' rooms. Professional home furnishing consultants will be stationed to provide consultations, and orders for products can be placed through the consultants. The store plans to showcase over 400 representative IKEA products.

Hyundai Department Store and IKEA are discussing adding ‘IKEA Planning Studios’ to major stores starting with Cheonho Branch.

Fredrik Johansson, CEO of IKEA Korea, said, “Through Korea’s first urban contact point, more people can get closer to IKEA,” adding, “We hope that with IKEA Planning Studio, people can meet home furnishing more conveniently and easily and make their homes happier spaces through professional planning services.”

Meanwhile, Hyundai Department Store has been pursuing differentiation in the living sector. The ‘Samsung Premium Store,’ introduced for the first time in the department store industry in 2018, is a representative example. It allows customers to check Samsung Electronics’ flagship home appliances all in one place and is a super-large store with a sales area of over 330㎡ (100 pyeong). It is currently operated at Mokdong, Pangyo, Kintex, Sinchon, and Mia branches, where last year’s home appliance sales growth rate increased by more than 20% compared to the same period in 2018.

Efforts are also being made to expand the Living Hall through store renewals. The Trade Center Branch introduced a ‘Luxury Living Hall’ on the 4th floor, known as the ‘prime spot’ inside the department store, replacing fashion brands through a renewal in 2018. In the same year, Cheonho Branch operates a super-large Living Hall spanning two floors with an area of 5,300㎡ (1,600 pyeong).

Hyundai Department Store’s acceleration in differentiating living content is closely related to the growth trend of the living product category. The sales growth rate of Hyundai Department Store’s living product category has maintained double-digit growth for three consecutive years since 2017 (11.9% in ’17, 18.3% in ’18, 13.8% in ’19). Among all product categories at Hyundai Department Store, only overseas fashion and living have recorded double-digit growth rates for three consecutive years.

Moon Sam-gwon, General Manager (Executive Director) of Hyundai Department Store’s Living Business Division, said, “As work-life balance spreads and the 52-hour workweek system is implemented, more customers are interested in ‘decorating their own space,’ and the domestic living market continues to grow,” adding, “We will continue to create differentiated stores that can lead domestic living trends and develop the living product category into a core MD of the department store.”

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