"Waiting at least 1 Hour, Queuing Even When Leaving: Department Stores Crowded as Consumer Sentiment Recovers"

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On the afternoon of the 26th of last month, when Hyundai Department Store officially opened 'The Hyundai Seoul' in Yeouido, Yeongdeungpo-gu, Seoul, citizens were seen browsing the stores inside the department store. Photo by Yonhap News

[Asia Economy Reporter Kim Young-eun] Consumers visiting department stores, including the recently opened 'The Hyundai Seoul,' are rapidly increasing. Analysts suggest that as COVID-19 vaccinations began and the weather warmed, pent-up offline consumption desires are now bursting forth.

At 'The Hyundai Seoul,' which recently opened in Yeouido, Seoul, an overwhelming crowd has poured in since its opening, exceeding what the stores could handle. People were lined up at the entrance even before the opening, and especially on weekends, it was reported that customers had to wait at least an hour to enter individual stores inside.

On various social networking services (SNS) and local online communities, many posts have appeared recently from people who visited The Hyundai Seoul but could not shop as planned due to the large crowds. It reportedly took more than 30 minutes just to park, escalators had lines, and visitors had to queue not only to enter but also to exit the stores, making the entire interior crowded with people.

As crowds surged, the department store announced on the 5th that it would temporarily implement a vehicle restriction system on weekends (Saturday and Sunday) this month for customers visiting by car.

Last month on the 24th, citizens lined up to enter in front of The Hyundai Seoul, which had a soft opening. Photo by Mun Ho-nam munonam@

On the 8th, Mr. Lee, who visited The Hyundai Seoul, said, "I somewhat expected there would be many people, but it was much more crowded than I thought, which surprised me." He added, "Queues were standard at every store, and the restaurants and cafes inside were so crowded that I couldn't even think of using them. I originally planned to have a meal inside, but it seemed impossible, so I just glanced at a few stores I really wanted to visit and gave up, leaving the building."

The crowded places were not limited to The Hyundai Seoul. According to the industry on the 8th, the sales of the three major department stores (Lotte, Shinsegae, Hyundai) all rose simultaneously. Their sales over the past weekend (6th-7th) increased by 10-20% compared to March of last year.

Lotte Department Store's sales increased by 94% compared to the same period last year, with overseas luxury goods sales showing triple-digit growth (143%) due to a strong trend of revenge consumption. During the same period, Shinsegae Department Store's overall sales surged by 94.7%, luxury goods sales rose by 109.9%, and outdoor goods sales increased by 74.5% as outdoor activities grew with the warmer weather. Hyundai Department Store also saw sales rise by 72.5%, with luxury goods sales increasing by 138.6%.

This recovery in consumer sentiment appears to have started around January, when social distancing measures, which had been significantly strengthened during the third wave of COVID-19, began to ease gradually. According to the Bank of Korea, the Consumer Confidence Index (CCSI) was 91.2 in December last year, rose to 95.4 in January, and further increased to 97.4 in February. Based on this upward trend, it is expected to exceed 100 in March, and a figure above 100 indicates an optimistic outlook on consumption.

On the afternoon of the 8th, when the daytime temperature rose above 10 degrees, the Jongno flower market in Seoul showed warm weather. Photo by Yonhap News

Regarding this situation, analysts say that as the seasons change and new offline shopping spaces emerge, consumer sentiment, which had been confined to online shopping due to COVID-19, has exploded.

Professor Lee Eun-hee of the Department of Consumer Studies at Inha University told Asia Economy in a phone interview, "Unlike typical department stores that have glass windows and require customers to focus only on viewing products, the recently opened The Hyundai Seoul incorporates openness, spaciousness, nature-friendliness, and relaxation." She explained, "Because it has these unique offline store characteristics and elements, people who had been accustomed only to online shopping for a while seem to be flocking there more."

She added, "There are desires that online shopping cannot satisfy. As COVID-19 has continued for over a year, consumers who have mainly accumulated individual consumption experiences online now have a very high desire for beautiful and pleasant offline spaces."

Professor Lee further analyzed, "Moreover, with spring arriving and the weather getting warmer, along with the start of COVID-19 vaccinations, more people seem to expect that the pandemic situation will become manageable. As a result, to satisfy their unmet shopping desires, they are pouring into offline spaces where they can directly feel and experience products."

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