Overcoming COVID-19... Department Store Industry Fully Participates in 'Korea Together Sale'

Lotte Department Store 'Cheer Up Korea'... Win-Win Through Margin Reduction
Shinsegae Department Store Supports Local Farms, Small Brands, and Regional Artists
Hyundai and Galleria Boost Consumption Through 'Donghaeng Sale'

[Asia Economy Reporter Lee Seung-jin] The department store industry is mobilizing to support small and medium-sized enterprises (SMEs) and farms struggling due to the novel coronavirus infection (COVID-19). The department stores plan to participate in the "Korea Together Sale," which will run for 17 days starting from the 26th, by lowering partner commission fees, selling SME products, and offering local specialty gift items to help revive the domestic economy.

First, Lotte Department Store will hold a regular sale themed "Cheer Up Korea!" at all Lotte Department Store locations nationwide from the 26th until July 12. Through this regular sale, the distribution and supply industries will actively join hands to promote consumption in earnest.

Lotte Department Store has signed a win-win cooperation agreement to alleviate the difficulties of partner companies facing management challenges and will actively support them. Approximately 800 partners participating in this Together Sale will have margin reductions applied to sales amounting to about 200 billion KRW during the sale period. Additionally, about 600 small and medium partners participating in the sale will receive their product sales payments for June, totaling approximately 90 billion KRW, up to 20 days earlier.

The main event of this Together Sale is the "Shoes Fair," held for five days from the 26th to the 30th at 90 shoe-related brand flagship stores across all Lotte Department Store branches. Special margins have been applied to 25 brands including Tandy, Daks, Guess, Tobox, and Crocs to maximize product discounts and sale rates. Additionally, 18 brands such as Soda, Misope, and Rockport will offer an extra 10% discount during the event period on top of existing store sales, with discounts reaching up to 50%, exclusively in the department store industry.

Shinsegae Department Store is joining the Together Sale in collaboration with local farms, small brands, and regional artists. Shinsegae has prepared various win-win events such as ▲ purchasing local food products struggling due to COVID-19 and giving them as gifts ▲ "Korea Fashion Market" to clear fashion industry inventory ▲ "Together Market" introducing popular SME products ▲ exhibitions for local artists facing difficulties due to event cancellations.

First, local specialty products from production areas suffering from domestic demand slump and blocked export routes have been prepared as gifts. This is the first time Shinsegae Department Store has prepared local specialty products as gifts. Instead of commonly used gifts like eco-bags, board games, plant cultivation kits, or gift certificates, they plan to distribute recently struggling domestic specialties to invigorate farm sales.

The items prepared include a "Sesame Oil and Perilla Oil Set" made by Han Saeng-i, a food manufacturing SME, using sesame and perilla purchased from Goryeong, Gyeongbuk, and Seocheon, Chungnam; a "Wando Anchovy 4-piece Set" and "Manjeon Gim Set," which are seafood products facing price drops due to export declines; and "Omiberry," a domestic native beverage made from omija cultivated by farms in Mungyeong, Gyeongbuk, which gained recognition after appearing in the movie Parasite. In total, there are four types.

Shinsegae Department Store will also hold a large-scale discount event for the fashion industry, which is struggling with accumulating inventory. From the 26th to July 2, the "Cheer Up Korea! Korea Fashion Market," hosted by the Ministry of Trade, Industry and Energy and co-organized by the Korea Fashion Industry Association, Korea Department Store Association, and Korea Textile Industry Federation, will be held with participation from 31 fashion brands.

Following that, from July 3, the Gangnam branch will host the "Together Market" for ten days, introducing excellent SME products to department store customers and opening new sales channels for SMEs. About 30 SME brands will participate in this event, which runs until July 16.

Hyundai Department Store plans to invigorate the domestic economy through a special exhibition of SME products, provision of 3 billion KRW worth of shopping support funds, and season-off and regular sales of about 250 brands. Hyundai Department Store will first hold a "Special Exhibition of SME Products" at three stores?Mokdong, Sinchon, and Chungcheong branches?to expand sales channels for SMEs struggling due to COVID-19.

The Trade Center and Pangyo branches will host the "Korea Fashion Market," selling over 50 brands of young casual, outdoor, and men's fashion items at discounts of up to 60% off the original price. Notably, Hyundai Department Store plans to reduce the sales commission by about 5 percentage points for brands participating in the "Korea Fashion Market" compared to previous rates.

At all Galleria Department Store branches, about 200 brands will participate in the Korea Together Sale, offering discounts ranging from 10% to 50%.

At the Galleria Luxury Hall located in Apgujeong-dong, various luxury brands are conducting season-off sales, offering 2020 spring/summer season products at 20-50% off the regular price. Major brands holding season-off sales include Maison Margiela (20%) and Philipp Plein (20-30%).

At Galleria Gwanggyo in Suwon, popular brands such as Emporio Armani (30%), Max Mara Studio (30%), and Ermanno Scervino are participating in the sale event. Additionally, Gant, a preppy look brand located on the first floor of the Suwon Convention Center pedestrian plaza, is offering 2020 spring/summer products at discounts of up to 50% off the regular price.

During the Together Sale period, various prize events and promotions will be held using the Galleria APP, offering mobile points called G-Cash that can be used like cash both online and offline. In particular, during the sale period, a prize event will be held where five customers who win through lucky numbers on receipts issued at purchase will receive 1 million G-Cash each.

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