'New Landmark in the Central Region' Followed by Hotels and Cosmetics... Jeong Yu-gyeong's Bold Move

[People 人] 'Daejeon Shinsegae Art and Science' Opens
New Store After 5 Years with 650 Billion Won Investment

[Asia Economy Reporter Jo In-kyung] Jung Yoo-kyung, General Manager of Shinsegae Department Store, has made a bold move by opening a large new department store in Daejeon with the goal of becoming a "landmark representing the central region." The hotel built right next to the department store has attracted attention as Shinsegae's first own-brand hotel, reflecting Jung's experience and design insight. Despite the COVID-19 pandemic, Shinsegae posted record-breaking results in the second quarter, driven by "revenge consumption" centered on luxury goods, and it is expected that the effect of the new store will further boost performance growth in the second half of the year. In addition, Jung has been steadily enhancing capabilities in cosmetics and luxury sectors and leading overseas exports to China and other countries, further strengthening synergy creation through business diversification.

A Department Store Embracing Art and Science

‘Daejeon Shinsegae Art & Science,’ which opened on the 27th of last month, is Shinsegae Department Store’s first new store in five years. Unlike existing department stores that commonly include regional names, this store was given a name reflecting Daejeon's characteristics, adding ambition and meaning to become a special space where science, culture, and art harmonize rather than just a place to sell goods.

Jung invested a total of 650 billion KRW here and built the third-largest department store among Shinsegae’s 13 stores, following Centum City and Daegu, in line with the "No.1 local store" strategy. Until just before the opening, she personally traveled to Daejeon to inspect the site and combined Shinsegae’s luxury competitiveness and commercial district analysis know-how to attract luxury brands such as Gucci, Bottega Veneta, Saint Laurent, Tom Ford, and Piaget, which were previously unavailable in the Daejeon area. It is equipped with experiential content including the first indoor sports theme park, aquarium, and art observatory in the Daejeon and Chungcheong regions, making it a "complex cultural space" that includes not only shopping but also various entertainment, sightseeing, and resting areas. The 193-meter Expo Tower connected to the department store is said by Shinsegae to embody Shinsegae’s unique artistic content and the identity of the science city Daejeon.

Jung’s ambitious project, the ‘Hotel Onoma, Autograph Collection Hotel,’ has also been popular, with weekend reservations fully booked for a month since its opening. The hotel fitness membership, limited to 300 people and available by pre-reservation, was also filled in a short period. As this is the first hotel that Jung personally led from the design stage to the final interior, industry insiders speculate that depending on the success of Hotel Onoma, Shinsegae may further expand into the hotel business.

Quiet yet Bold... Shinsegae Expands Its Footprint

Jung, who leads Shinsegae Group’s department store division, has quietly but persistently demonstrated strong management since starting independent management in 2015, standing out as an owner-manager. Especially amid the major trend of retail shifting from offline to online, her strategy to further expand store size and make it a representative commercial district has led to Shinsegae Gangnam Store achieving annual sales exceeding 2 trillion KRW in 2019, becoming the top-grossing store in Korea.

Shinsegae recently completed a 10-month renovation of the Gangnam Store and created the first mezzanine space between the first and second floors of the main building in the department store industry. Luxury brands were relocated to the second and third floors, and more than 50 cosmetics brands were gathered on the first floor, making it the largest cosmetics hall in Korea. The Gyeonggi Store, which opened in 2007, recently reopened its underground food hall and plans to renovate the first-floor luxury hall next year. Shinsegae said, "Through the successful renovation of the Gangnam Store, we have introduced Korea’s first and largest offline content," and added, "We will further solidify the status of Korea’s No.1 store with overwhelming content based on spatial innovation."

Strengthening capabilities in cosmetics and luxury sectors has also been recognized as a successful strategy. Jung entered the cosmetics business in 2012 by acquiring the color cosmetics brand ‘VDV’ at Shinsegae International and has expanded her scope by importing and distributing overseas luxury brands such as ‘Byredo’ and ‘Tike’ since 2014. Last year, she acquired shares in the global cosmetics brand ‘Swiss Perfection’ and targeted top VIP customers in China by placing products on China’s largest luxury online platform, major city hotel spas, and duty-free shops.

The French luxury fashion house ‘Paul Poiret,’ acquired in 2015, was reborn this year as the in-house cosmetics brand ‘Poiret,’ opening an offline store on the first floor of the Gangnam Store to attract VIP customers. After raising brand awareness through Shinsegae Gangnam Store, Poiret plans to open an additional store at Shinsegae Centum City Store, a key commercial district in Busan, by the end of this year to strengthen its position in the domestic luxury cosmetics market.

An industry insider commented, "The sophisticated image, luxury lineup, and VIP marketing strategy that Jung has shown through department store spaces have greatly raised interest and expectations for the newly launched hotel and luxury cosmetics businesses."

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