Overcoming the COVID Crisis and Restarting Revival... Department Store Big 3 Open New Stores After 5 Years

Hyundai Department Store Yeouido Branch, Seoul's Largest Scale
Lotte Department Store Dongtan & Shinsegae Department Store Daejeon
Creation of Mega Complex Cultural Spaces
Dedicated to Attracting Luxury Brands, Targeting the MZ Generation

[Asia Economy Reporter Seungjin Lee] The top three department stores are set to revive the atmosphere this year through new store openings. This marks the first time in five years since 2016 that the big three department stores have opened new locations.

According to the distribution industry on the 5th, Lotte, Shinsegae, and Hyundai Department Store will each open new stores in Seoul, Gyeonggi, and Daejeon, respectively. All are large-scale stores emphasizing the unique luxury of department stores while aiming to serve as complex cultural spaces that can be used as leisure facilities. In addition, they are focusing on attracting famous luxury brands to capture the MZ generation (born between the 1980s and early 2000s), which has emerged as a key consumer group.

Hyundai’s First New Store Opening in the Year of the Black Tiger

The most anticipated store of the new year is Hyundai Department Store’s Seoul Park One 'Yeouido Branch,' which is set to open in two months. It is Hyundai Department Store’s 16th branch and the largest department store in Seoul. With seven basement floors and eight above ground, the sales area alone reaches 89,100㎡, surpassing Shinsegae Gangnam Branch (86,500㎡) in size.

The Yeouido Branch boasts accessibility within an hour from the Seoul western area including Yeouido, Mapo, and Gongdeok, as well as the metropolitan area. It is planned to establish itself as a shopping mecca by being designed as a complex cultural space under the concept of "a space that provides customers with a new shopping experience."

Considerable effort has also been made to attract luxury brands. The three major luxury brands?Louis Vuitton, Chanel, and Gucci?are currently in negotiations to open stores. Utilizing the technology of the unmanned automated store 'Amazon Go' and enhancing online services, the store aims to attract the MZ generation as well.

Lotte and Shinsegae’s Largest Regional Stores

Lotte and Shinsegae will also open new stores this year. Lotte Department Store will open the Dongtan Branch in Dongtan 2 New Town, Gyeonggi Province, in June, targeting the southern Gyeonggi area. The store will have two basement floors and six above ground, with a sales area of 76,000㎡ (approximately 23,030 pyeong), making it the second-largest store after Jamsil Branch among all Lotte Department Store locations.

They plan to maximize comfort and openness to enhance the role as a cultural space and focus on targeting the MZ generation and strengthening luxury competitiveness. Lotte Department Store completed the renewal of Yeongdeungpo Branch in Seoul last year and is currently renovating its main store, reportedly redesigning floor plans and store layouts aimed at the MZ generation.

In August, Shinsegae Department Store will open the Shinsegae Science Complex at Expo Science Park in Yuseong-gu, Daejeon. This will be the 13th department store and Shinsegae’s first venture into Daejeon. The Shinsegae Science Complex will be part of a large-scale complex facility with five basement floors, 43 above ground floors, and a total floor area of 279,263㎡ (approximately 85,700 pyeong).

Equipped with department stores, scientific facilities, hotels, and other commercial facilities, it will present a lifestyle space combining science, entertainment, and shopping. An observatory reaching 193 meters in height will also be housed in this building. Shinsegae invested about 600 billion KRW for this project. They are putting great effort into attracting key luxury brands such as Herm?s and Chanel.

An industry insider said, "Everyone is paying attention to the new store openings after experiencing many difficulties due to COVID-19 last year," adding, "Since this is the first opening in five years, we hope it will revitalize the regions and serve as a turning point for the industry’s recovery."

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