Lotte Department Store Jamsil Branch Surpasses 3 Trillion KRW in Annual Sales... Targets 4 Trillion KRW by 2027

Achieving 2 Trillion Won in 2 Years, Establishing as a Mega Store
Cultural, Tourism, and Entertainment Combined 'Lotte Town Jamsil'
Large-scale Renewal of Jamsil Main Store and Avenuel Next Year

Lotte Department Store Jamsil Branch announced on the 26th that its annual sales surpassed 3 trillion won as of the 25th. After exceeding 2 trillion won in annual sales in 2022, it entered the 3 trillion won range in just two years.

Despite the domestic economic downturn, Lotte Department Store Jamsil Branch recorded a compound annual growth rate (CAGR) exceeding 20% over the past three years until last year, and continued a growth rate in the double digits this year as well. Lotte Department Store explained that this growth is the result of focusing on 'super (超) retail,' which organically connects department stores, luxury brand halls, and shopping malls to provide experiences and content beyond the expected level of a traditional department store.

Specifically, they strengthened issue brands and food & beverage (F&B) services that excite the MZ generation (Millennials + Generation Z) and continuously attracted large-scale experiential pop-ups. They also enhanced high-end brands and services tailored to top-tier customers seeking premium shopping experiences.

Lotte Department Store Jamsil Main Building. Provided by Lotte Department Store

Upgrading Strengths of Department Store, Luxury Brand Hall, and Shopping Mall... World Mall Focuses on Experiential Pop-ups

Lotte Department Store Jamsil Branch is the largest complex in Seoul, located in front of the global landmark Lotte World Tower and Seokchon Lake. It includes a hotel, ultra-high observation deck, aquarium, cinema, and nearby theme park Lotte World. From January to November this year, the number of visitors to Jamsil Branch reached 58 million, about a 10% increase compared to last year.

The core change that brought the biggest transformation to Jamsil Branch is Lotte World Mall. Since 2021, when Lotte Department Store took over the operation of World Mall from Lotte Asset Development, Jamsil Branch has evolved into a mega shopping complex with a retail area of 165,289㎡ (approximately 50,000 pyeong). Since then, by adding Lotte Department Store’s merchandising know-how, they have strengthened unique content that excites younger generations.

Accordingly, World Mall houses highly talked-about K-fashion brands and F&B outlets such as Ader Error, Mardi Mercredi, London Bagel Museum, Blue Bottle, Apple Store, and Lego Flagship. Over the past two years, about 100 new or renovated stores have opened in World Mall. During the same period, more than 600 pop-ups have been held.

The Main Building and AvenueL offer customized merchandising for top-tier customers, providing the highest level of premium shopping experience in Korea. Especially, the luxury-exclusive pop-up space 'The Crown' on the basement level 1 of AvenueL hosts various events including exclusive pop-ups of luxury brands. Currently, a Tiffany pop-up is ongoing.

This year, the Main Building significantly expanded premium lifestyle brands. In June, they completed a premium audio zone with brands such as JBL, Tannoy, and Geneva, and in November, they created a premium living hall by introducing Italian luxury furniture brand Cassina, Edra, Steelcase, and others for the first time in the industry. From January to November this year, sales of lifestyle product categories at Jamsil Branch recorded a growth rate exceeding 40%.

Additionally, they expanded and renovated five premium customer lounges in the Main Building and AvenueL, establishing the largest tier-based premium customer lounges in Korea with a total area of 2,000㎡ (approximately 620 pyeong).

Symbolic large-scale events unique to Lotte Department Store are also being actively held centered around Jamsil Branch. The 'Lotte Christmas Market,' launched last year, is an event designed to introduce European year-end market culture to Korean customers. After attracting 240,000 visitors last year and establishing itself as the top year-end event in the retail industry, this year it expanded to 2,314㎡ (about 700 pyeong) and surpassed 250,000 visitors within four weeks of opening. Foreign visitors average about 400 per day. Additionally, 'Stylerun,' which combines running and cultural elements, is held annually centered on Jamsil Branch. The sixth Stylerun event this year attracted over 5,000 participants.

Lotte Avenuel Jamsil and Lotte World Mall. Provided by Lotte Department Store

Targeting Korea’s First 4 Trillion Won Department Store... Full Renovation Underway

Lotte Department Store Jamsil Branch will begin a full renovation of the Main Building next year to achieve a greater leap forward. This is a large-scale project conducted 37 years after its opening in 1988. The renovation will start from the lower floors with a goal of completion by 2027. The food hall renovation will be the first phase. The food hall is a sector Lotte Department Store has recently been focusing on. They plan to create an innovative food hall in collaboration with overseas design firms.

World Mall will continue to develop as a shopping mall with unique content and diverse F&B options, while AvenueL will be revamped and its merchandising strengthened to become the nation’s top luxury specialty hall. Through this renovation, Jamsil Branch aims to become the first department store in Korea to achieve annual sales of 4 trillion won by 2027.

Besides Jamsil Branch, the Seoul Sogong-dong Main Store and Incheon Branch are also undergoing renovations. Lotte Department Store Main Store surpassed 2 trillion won in annual sales again on the 23rd of this month, following last year. The Incheon Branch opened the premium food hall 'Lepicerie' at the end of last year and renovated its beauty hall this year. Next year, it plans to add kids and fashion halls and expand premium brands. Currently, the Incheon Branch is promoting a premium residential complex mixed-use development on a nearby site in Guwol-dong, and the company expects that the Incheon area could be developed into 'Lotte Town Incheon' in the long term.

Jung Jun-ho, CEO of Lotte Department Store, said, "Based on overwhelming competitiveness, Jamsil Branch will not only surpass 4 trillion won, the first in Korea’s department store industry, but also rise to become the world’s largest department store. We will open a new future for retail through groundbreaking innovation."

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