'Foreigners' Must-Visit' The Hyundai Seoul Joins... Expanding 'Department Store 1 Trillion Club' to 12 Locations

Sales Reach 1 Trillion Won with One More Store Than Last Year
High Growth in Fashion Despite Consumer Spending Contraction
Shinsegae Centercity Store Nears 2 Trillion Club

It has been tentatively estimated that there are 12 department store branches with sales exceeding 1 trillion won this year. Adding to the 11 branches led by Shinsegae Gangnam Store last year, The Hyundai Seoul newly joined the 1 trillion won club. Despite a significant contraction in consumer sentiment due to the prolonged high inflation, these stores reportedly broke the 1 trillion won barrier by recording high sales growth rates in the fashion sector, including overseas luxury brands.

Storefront view of The Hyundai Seoul.
[Photo by Hyundai Department Store]

The Hyundai Seoul Joins the 1 Trillion Won Club

According to industry sources on the 29th, there are a total of 12 stores with sales exceeding 1 trillion won this year, including 4 from Shinsegae and Hyundai, 3 from Lotte, and 1 from Galleria. Among them, Hyundai now has four 1 trillion won club stores with the addition of The Hyundai Seoul to Pangyo, Main, and Trade Center branches. Shinsegae, as in the previous year, saw Gangnam, Centum City, Daegu, and Main branches surpass 1 trillion won in sales. Lotte also had Jamsil, Main, and Busan Main branches join the 1 trillion won club. At Galleria, the Apgujeong luxury hall was the only store to achieve sales of 1 trillion won.

Just three years ago, there were only five department stores in the 1 trillion won club. These included Shinsegae Gangnam and Centum City stores located in traditional affluent areas, Lotte Main and Jamsil stores, and Hyundai Pangyo store. However, due to the rebound effect following the COVID-19 pandemic, the number of stores achieving 1 trillion won in sales increased to 11 last year.

More Than Half of the Stores Host 'EruSha'

Most of these stores show strength in the fashion sector, especially luxury brands. In fact, among the 12 stores in the 1 trillion won club, 7 have all three major luxury brands known as 'EruSha' (Herm?s, Louis Vuitton, Chanel). These include Hyundai Main Store located in Gangnam, Shinsegae Main and Gangnam stores, Lotte Jamsil store, and Galleria luxury hall. Expanding the scope to provinces adds Shinsegae Daegu and Centum City stores.

The only store to achieve annual sales of 1 trillion won without EruSha is virtually The Hyundai Seoul. It is analyzed that The Hyundai Seoul was able to join the 1 trillion won club by establishing itself as a 'must-visit course' among foreign tourists whose visits to Korea surged after the endemic transition. Monthly foreign sales increased by as much as 700% to 1000% compared to the same period last year, supporting this. However, The Hyundai Seoul is also seeking to expand its luxury market by opening a Louis Vuitton store this month, so it is uncertain whether this sales structure will continue.

Exterior view of Shinsegae Department Store Gangnam Branch. [Photo by Shinsegae Department Store]

Breaking the 3 Trillion Won Barrier... More Stores Achieve 2 Trillion Won

Among these 12 stores, the highest sales were recorded by Shinsegae Gangnam Store. It became the first department store in Korea to surpass 3 trillion won in sales. Globally, department stores with annual sales exceeding 3 trillion won are rare, including Harrods in London, UK, and Isetan Shinjuku in Japan. Shinsegae Gangnam Store became the first store in Korea to reach 2 trillion won in sales in 2020 and broke the 3 trillion won barrier this year, four years later, earning another first title.

Following Shinsegae Gangnam Store, the store with the next highest sales is Lotte Jamsil Store, with expected sales of around 2.8 trillion won this year. At Lotte, the Main Store also surpassed 2 trillion won in sales for the first time this year. Achieving annual sales of 2 trillion won at Lotte Main Store took 44 years since its opening in 1979 and 24 years since surpassing 1 trillion won in sales in 1999. At Shinsegae, Centum City Store is also likely to surpass 2 trillion won in annual sales for the first time this year. A Shinsegae official stated, "Considering sales growth rates, it is expected to record 2 trillion won by the end of the month (December 31)." Shinsegae Centum City Store's sales last year were 1.8449 trillion won.

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