Galleria Luxury Hall Achieves 1 Trillion KRW in Annual Sales... Sales per Square Meter Also at Global Level (Comprehensive)

Luxury Demand Explodes... 31 Years Since Opening
VIP Customers Spending Over 20 Million KRW Annually Account for 40% of Sales

The Galleria Department Store Luxury Hall located in Apgujeong, Seoul, has surpassed annual sales of 1 trillion won. This milestone was achieved 31 years after its opening in 1990. Considering its relatively small size of 8,300 pyeong (27,438㎡) spanning from basement level 1 to the 4th floor, its sales per pyeong reached 11 million won, elevating it beyond the top in Korea to a world-class level.

"Thanks to Revenge Spending" 1 Trillion Club

On the 16th, Galleria announced that the Luxury Hall had exceeded 1 trillion won in annual sales as of the previous day. Despite the prolonged COVID-19 pandemic, demand for luxury goods surged explosively, with sales already surpassing the previous year’s same period by 31% as of November. In particular, sales of ultra-high-end luxury items increased sharply: high jewelry & watches such as Patek Philippe rose by 67%, luxury accessories like Chanel by 49%, and luxury menswear including Louis Vuitton men’s by 35%.

The Galleria Luxury Hall was the first department store in Korea to introduce and name the concept of a 'luxury hall' in the retail industry. At its opening, it started with Cartier and Gucci, followed by Louis Vuitton in 1995, Chanel and Herm?s in 1997, becoming the first Korean department store to showcase the three major luxury brands known as ?luCh? (Herm?s, Louis Vuitton, Chanel). Popular luxury brands such as Dior, Celine, Goyard, Tom Ford, and Patek Philippe also expanded their domestic operations starting from the Galleria Luxury Hall.

This year, the Luxury Hall significantly expanded its jewelry and watch brands. Stores that were previously located alongside luxury boutique brands were expanded to the luxury men’s section (West 4th floor) and luxury women’s section (East 2nd floor). The West 3rd floor, composed of women’s apparel and shoes, was also extensively renovated with brands favored by the MZ generation (Millennials + Generation Z).

A Galleria representative explained, "Our proactive luxury MD strategy, established and executed ahead of other department stores in response to the rapidly increasing luxury consumption, was effective. Despite some sections being unable to operate more than half of their sales area for over two months due to major renovations, achieving annual sales of 1 trillion won is highly encouraging."

Sales per Pyeong Surpasses Isetan and Lafayette

The significant increase in sales from VIP customers who spend over 20 million won annually also played a crucial role in joining the 1 trillion won club. This year, VIP sales accounted for about 40% of the Luxury Hall’s total sales, increasing by 49% compared to the same period last year. Customers who purchased over 200 million won annually doubled their purchase amounts compared to the previous year. The VIP lounge outside the department store, ‘Maison Galleria,’ has also become a strategic stronghold for securing VIP customers. Galleria exclusively reveals curated products and art classes to VIPs, and thanks to this customer acquisition strategy, the number of new VIP tier customers is expected to increase by more than 30% next year.

As high-spending customers flock to the Galleria Luxury Hall, its monthly sales per pyeong (sales efficiency) has risen beyond the highest in Korea to a level comparable to global department stores. Sales per pyeong reach 11 million won. Assuming similar sales growth rates among top global department stores this year, it surpasses London’s Harrods (in the 6 million won range) and Paris’ Lafayette (in the 9 million won range), approaching the level of Tokyo’s Shinjuku Isetan (in the 12 million won range).

Kang Shin-ho, head of the Galleria Luxury Hall, said, "With sophisticated luxury brands and refined lifestyle content, we have achieved the 1 trillion won club this year and earned the title of the world’s highest sales efficiency department store. We will continue to strengthen our position as a firmly established global luxury department store."

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