The Hyundai Seoul Aims to Surpass Main and Trade Branches as a 'Top 2' Destination

Monthly Sales Growth of 20% This Year Alongside Pangyo Branch
Riding the Global MZ Wave, Expected to Join the 1 Trillion Club and Leap to Top 2

The Hyundai Seoul is making significant strides this year despite a slowdown in sales growth across the department store industry, aiming to join the '1 trillion won club.' There are also forecasts that it will soon challenge the Pangyo branch, which currently holds the top sales position within Hyundai Department Store, for the 'Top 2' spot.

The Hyundai Seoul exterior view [Photo by Hyundai Department Store].

According to Hyundai Department Store on the 29th, The Hyundai Seoul's average monthly sales growth rate is around 20%. Considering that the overall growth rate of all Hyundai Department Store branches was about 5% as of July, this represents a high growth rate. Based on last year's sales level (950.9 billion won), if this trend continues, it is expected to record sales of around 1.14 trillion won this year, surpassing 1 trillion won in the shortest period ever for a domestic department store, in just 2 years and 10 months.

Last year, Hyundai Department Store's top three branches by sales were Pangyo (1.4532 trillion won), Apgujeong Main Branch (1.2375 trillion won), and Trade Center Branch (1.2244 trillion won), maintaining a solid top 3 structure. Industry insiders predict that The Hyundai Seoul will surpass the Main Branch and Trade Center Branch in the future and secure a place among the 'Top 2' alongside Pangyo. In the second half of this year, the growth rate, which is currently in the single digits due to the high base effect from last year, is expected to improve; nevertheless, The Hyundai Seoul's growth rate (20%) remains outstanding along with Pangyo. As of last year, the Main Branch and Trade Center Branch ranked 7th and 9th respectively in domestic department store sales, raising expectations that The Hyundai Seoul could also break into the top 5 nationwide.

The Hyundai Seoul's remarkable progress is the result of several factors aligning: opening during the period of concentrated domestic consumption amid the COVID-19 pandemic, increased purchasing power of the MZ generation (Millennials + Generation Z), and a virtuous cycle attracting trendy brands. Especially with the endemic phase (periodic outbreaks of infectious diseases) fully underway this year, the sharp increase in purchases by foreign tourists visiting The Hyundai Seoul is a positive factor. The foreign customer sales growth rate at The Hyundai Seoul from January to July this year compared to the previous year was 779.7%, more than double the overall Hyundai Department Store average growth rate of 302.2% during the same period. This year, foreign sales account for 11% of total sales. Among foreign customers at The Hyundai Seoul, those in their 20s and 30s make up 67%. In other words, two out of three foreign buyers belong to the MZ generation. Thanks to this, as of the 25th, the cumulative number of visitors to The Hyundai Seoul has surpassed 100 million in just 2 years and 6 months.

The key word that will serve as a gauge for the leap to the Top 2 is 'luxury.' Industry insiders expect that with the opening of the Louis Vuitton store at the end of the year, The Hyundai Seoul will reach its second turning point. Global luxury brands consider factors such as the number of existing brand stores in the area, sales and visitor numbers of the department store, and the presence of other luxury brands when deciding to open stores. Therefore, not only will the sales effect generated by the Louis Vuitton store itself be significant, but it will also increase the likelihood of other luxury brands like Chanel and Herm?s entering, making the year-end a crucial moment, according to analysis. It is also encouraging that emerging designer brands, which are becoming essential destinations for the global MZ generation, are being considered for entry.

Hyundai Department Store aims to establish The Hyundai Seoul as a 'Young and Luxury' image that leads global trends by attracting famous domestic and international brands. To this end, next month they are preparing to open globally influential brands such as the Disney Store and Five Guys in October. Kim Chang-seop, General Manager (Executive Director) of The Hyundai Seoul, said, "As a result of quickly introducing issue stores like pop-up stores held every other day, The Hyundai Seoul is recognized not only domestically but also by foreign customers as a barometer of K-content trends." He added, "We will continue to strengthen differentiated content and services."

Visitors are shopping at The Hyundai Seoul in Yeongdeungpo-gu, Seoul.
Photo by Hyundai Department Store.

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