Hyundai Department Store Opens 'Offworks 2nd Branch,' an Outlet Store Cheaper Than Outlets

Storefront of Offworks 1st branch located at Hyundai City Outlet Dongdaemun in Jung-gu, Seoul. (Photo by Hyundai Department Store)

[Asia Economy Reporter Seungjin Lee] Hyundai Department Store will open the second Off-Price Store "Offworks" on the first floor of the Hyundai City Outlet Garden Five branch mall on the 28th. This is the opening of the second store one year after the first store opened at Hyundai City Outlet Dongdaemun branch in September last year.

"Offworks" is an "Off-Price Store" launched last year by Hyundai Department Store to enhance the competitiveness of its outlet business. An "Off-Price Store" refers to a store where retailers directly purchase inventory products of famous brands and sell them at higher discount rates than regular outlet products.

Typically, the discount rate of an "Off-Price Store" ranges from 40% to 70% off the original selling price, which is about 10 to 20 percentage points higher than the usual outlet product discount rate (30% to 50%). TJ Maxx and Nordstrom Rack in the United States are representative examples.

The total store size of "Offworks 2nd branch" is 562㎡ (approximately 170 pyeong), filled with over 120 fashion, accessories, and living brands' clearance and new products. Clearance items are sold at 40% to 80% off the original selling price, and new products are sold at 15% to 25% off.

The store consists of a "Premium Luxury Zone" selling directly purchased luxury brands such as Valentino and Saint Laurent, a "Contemporary Zone" composed of contemporary brands like Maje, Sandro, Ami, Acne, and Maison Kitsun?, a "Men's Zone" selling men's and sports brands such as Stone Island, Polo, Lacoste, and J. Lindeberg, and an "Imported Tableware Zone" featuring imported tableware brands like Portmeirion and Villeroy & Boch.

In particular, the second branch has strengthened its premium kids MD targeting "mom customers" in the surrounding Gangnam and Songpa commercial districts. Representative brands include Little Marc Jacobs, Bugaboo, and other premium brands related to children's clothing, accessories, and strollers.

A Hyundai Department Store official said, "Unlike the Dongdaemun commercial district, where the first store is located and frequently visited by foreign tourists, the second store is located in representative residential dense areas such as Gangnam, Songpa, and Pangyo. We have reinforced the MD so that the whole family can enjoy not only luxury brands but also kids and sports items, aiming to create a shopping and cultural space where family customers can enjoy together."

Meanwhile, to commemorate the opening of the Garden Five branch, Offworks will hold various discount events. From the 28th to September 6th, the "TamTam Chance" event, meaning to covet both brands and prices, will offer special-priced products from famous domestic and international brands such as Golden Goose, Max Mara, Comme des Gar?ons, and Valentino. Additionally, the "JupJup Chance" event will sell representative products from Adidas, Portmeirion, and others starting from 10,000 KRW.

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