Shinsegae Department Store, Last Year's Sales Reach 2.557 Trillion Won... Record High

Single Store Transaction Amount: Gangnam 3 Trillion, Centum 2 Trillion Impact
Including Subsidiaries like Duty-Free Shops, Sales Total 6.3571 Trillion
Operating Profit 639.8 Billion Won, Down 0.9% Year-on-Year

Shinsegae Department Store set a record high in sales, driven by strong performance at its flagship stores, including Gangnam Branch surpassing 3 trillion won in transaction volume.

Shinsegae announced on the 7th that its department store business sales last year were tentatively estimated at 2.557 trillion won, up 2.8% from the previous year. This figure combines the results of separate corporations Shinsegae Department Stores in Gwangju, Daegu, and Daejeon, representing the highest sales ever. The company explained that this was supported by strong performances such as Gangnam Branch, which became the first single store in the domestic retail industry to exceed 3 trillion won in transaction volume, and Centum City, the first regional store to achieve 2 trillion won.

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

However, operating profit for the department stores was 439.9 billion won, down 12.4% from the previous year. Shinsegae Department Store attributed this to rising management and promotional expenses due to inflation. The fourth quarter operating profit also decreased by 3.5% year-on-year to 144.7 billion won. Sales for this quarter were 703.4 billion won.

Last year, Shinsegae Department Store focused on strengthening core competitiveness through spatial innovation such as the Gangnam Branch's young fashion specialty hall 'New Street' and Centum City's 'Hyper Ground,' as well as content differentiation including pop-up stores and art marketing. This year, they plan to continue offline space innovation with expansions and renovations of the Gangnam Branch food hall and men's luxury stores, while concentrating efforts on online-offline synergy through the online gift service 'Shinbaek Gift Hall' and activation of the department store app.

Including consolidated subsidiaries such as duty-free shops, Shinsegae's sales last year were 6.3571 trillion won, down 18.6% from the previous year. Operating profit also decreased by 0.9% to 639.8 billion won. Fourth quarter sales were 1.7203 trillion won, down 22.3% year-on-year, while operating profit rose 45.7% to 206 billion won.

Exterior view of the Shinsegae Duty Free complex fashion store at Incheon International Airport Terminal 1.
[Photo by Shinsegae]

By subsidiary, Shinsegae DF (duty-free shop) recorded a fourth quarter operating profit of 8.9 billion won, an increase of 35.2 billion won compared to the same period last year. Although sales halved (down 51.4%) to 484.1 billion won due to changes in the duty-free discount structure, operating profit increased as the proportion of individual free travelers grew.

Shinsegae Casa's fourth quarter sales increased by 9.6% to 64.9 billion won, and operating loss decreased from 17.8 billion won in Q4 2022 to 1 billion won last year. During the same period, Shinsegae International recorded sales of 392.5 billion won, down 8.8%, and operating profit of 14 billion won, down 27.2%. Shinsegae Central City saw sales decline 7.6% to 82.3 billion won, but operating profit increased 27.0% to 24 billion won.

A Shinsegae official said, "Despite a challenging domestic sales environment, we achieved strong results based on the department store's record-high sales and solid management of consolidated companies. We will achieve even better performance this year by innovating offline department store content and enhancing the core competitiveness of our subsidiaries."

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