"Department Stores and Duty-Free Shops Soared Together" Hyundai Department Store, Last Year's Sales 3.5724 Trillion Won, 'All-Time High' (Comprehensive)

Hyundai Department Store, Sales 3.5724 Trillion KRW... 57.2% Increase
Operating Profit 264.4 Billion KRW, 94.6% Growth "Recovered to Pre-COVID-19 2019 Levels"
Department Store, 'The Hyundai Seoul' Effect... 43.4% of Sales from Ages 20-30
Duty-Free Airport Store Chanel Opening Drives Sales to 1.5912 Trillion KRW "Expected to Surpass 2 Trillion This Year"

The Hyundai Seoul.

[Asia Economy Reporter Yuri Kim] Hyundai Department Store recorded its highest-ever sales last year.

Hyundai Department Store announced on the 10th that its consolidated sales last year reached 3.5724 trillion KRW, a 57.2% increase compared to the previous year. Operating profit recorded 264.4 billion KRW, a 94.6% increase.

A Hyundai Department Store official said, "Both department stores and duty-free shops showed strong performance last year, achieving record-high sales," adding, "Operating profit (264.4 billion KRW) also showed a sharp recovery, approaching the pre-COVID-19 level of 292.2 billion KRW in 2019."

The department store division posted Q4 sales of 566.6 billion KRW, up 12.7% year-on-year, and annual sales increased 20.2% to 2.1032 trillion KRW. Operating profit rose 28.3% in Q4 to 104.9 billion KRW and increased 53.5% annually to 304.8 billion KRW.

Core product categories such as luxury goods and overseas men's and women's fashion led the growth. Hyundai Department Store's total overseas luxury sales increased by 38%, with watches and jewelry up 54.2%, and overseas men's fashion rising 59.6% by category.

The influx of the MZ generation (Millennials + Generation Z) was also notable. Hyundai Department Store stated, "Last February, with the opening of The Hyundai Seoul and the renewal of major stores' young fashion specialty sections such as Pangyo, along with the launch of the exclusive VIP lounge 'Club YP' for VIP customers in their 20s and 30s, we implemented a company-wide strategy targeting the MZ generation, resulting in overwhelming new customer acquisition."

Last year, Hyundai Department Store recorded the highest-ever sales and customer numbers among customers in their 20s and 30s. The number of customers in their 20s and 30s increased by 86.7% and 54.2%, respectively, compared to the previous year, with their sales share reaching 43.4%. As premium customers in their 20s and 30s flocked in, sales from customers in their 20s rose 95.8% year-on-year, and sales from customers in their 30s increased by 40.3%.

Hyundai Department Store Duty-Free also recorded its highest-ever annual sales of 1.5912 trillion KRW last year, a 155.7% increase compared to the previous year. During the same period, the operating loss narrowed to 40.8 billion KRW from 65.5 billion KRW the previous year, improving by 24.7 billion KRW. Sales doubled compared to the pre-COVID-19 period, and the deficit was reduced by nearly half. The company expects Hyundai Department Store Duty-Free's sales to surpass 2 trillion KRW this year and anticipates a future turnaround to profitability.

Hyundai Department Store Duty-Free said that aggressive business expansion realizing 'economies of scale' and increasing duty-free volume led to sales growth and improved profitability. Since opening its first Trade Center branch in November 2018, it aggressively expanded its network by opening Dongdaemun branch in February 2020 and Incheon Airport branch in September 2020. Last September, it opened a Chanel boutique at Incheon Airport's Terminal 1, continuously strengthening its luxury MD competitiveness.

A Hyundai Department Store official said, "The department store division saw increased sales and operating profit compared to the previous year due to the opening effects of new stores like The Hyundai Seoul and the recovery of consumer sentiment," adding, "The duty-free division also improved both sales and profitability due to increased buying power from expanded market share."

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