Shinsegae百 Factory Store Achieves Annual Transaction Amount of 100 Billion KRW

8 Years After Opening Starfield Goyang Store No.1 in 2017
Plans to Add 4 Domestic Stores and 1 Store in Laos This Year

Shinsegae Department Store announced on the 5th that its off-price store, 'Shinsegae Factory Store,' achieved an annual transaction amount of 100 billion KRW last year.

Shinsegae Factory Store Yeoju Premium Village. Provided by Shinsegae Department Store

The Factory Store is an off-price store where Shinsegae Department Store purchases brand inventory products and sets the prices directly for sale. It offers a constant 30-80% discount on domestic and international well-known brand outlet products, including items from Shinsegae Department Store's luxury select shop 'Boondeshop.'

Since the first store opened in August 2017 at Starfield Goyang, the annual transaction amount of Shinsegae Factory Store, which was 7.5 billion KRW in its first year, has grown at an average annual rate of over 38% for eight years.

The company explained that the brand composition tailored to the commercial district and customer characteristics contributed to this growth. For example, at Starfield Suwon, mainly visited by MZ generation (Millennials + Generation Z) customers, street casual and overseas contemporary brands preferred by them are prioritized, while at the Gangnam store, which has a high average spending per customer, the proportion of fur brands and overseas women's brands favored by high-income female customers is increased.

In the first half of this year, the first overseas Shinsegae Factory Store will open inside 'Kok Kok Mega Mall,' scheduled to open in Vientiane, the capital of Laos. This is based on a franchise business agreement signed in July last year with 'Grandview Property,' a subsidiary of Korao Group, the largest private company in Laos.

In line with Laos's high interest in Korean culture, the store plans to increase the proportion of K-fashion to more than half and supply K-beauty products that fit the local market. The goal is to operate 10 stores in Laos within the next 10 years. They are also considering adding four more stores domestically. The annual transaction target is 120 billion KRW.

Park Sang-eon, head of Shinsegae Department Store Factory, said, "We will continue to strive to offer good products at affordable prices."

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