Why Shinsegae Casa Opened Its First Materasso Specialty Store in Daejeon

Opened a 330-Square-Meter Experiential Store in Yuseong-gu, Daejeon
Spotlighting the Potential of Non-Metropolitan Markets Over the Saturated Seoul Metropolitan Area
Shinsegae Casa Aims for 50% Sales Growth for "Materasso" This Year

Shinsegae Casa has launched an initiative to target non-metropolitan markets, led by its sleep-specialized brand "Materasso." After achieving its first annual operating profit last year and continuing to post a profit in the first quarter of this year, the company aims to establish a strong presence in the premium sleep market by designating major regional cities such as Daejeon, rather than the saturated Seoul metropolitan area, as growth hubs.

According to industry sources on May 30, Shinsegae Casa opened Materasso Daejeon, the brand’s first standalone specialty store, in Yuseong-gu, Daejeon, on May 27. The experiential store spans approximately 330 square meters and moves away from the traditional shop-in-shop format within department stores. It is designed as a space where customers can browse and try out various mattress products and receive consultations.

The decision to select Daejeon as the first launch location was a strategic move by Shinsegae Casa to protect its performance and lay the groundwork for future growth. Following its first annual profit last year, Shinsegae Casa continued its profitability in the first quarter of this year, recording sales of 62.3 billion won and an operating profit of 100 million won. However, due to the overall downturn in the furniture industry, both sales and operating profit declined by 9.1% and 90%, respectively, compared to the same period last year.

As a result, the company has shifted its focus away from the already saturated Seoul metropolitan area and is seeking a breakthrough by targeting actual demand in Daejeon, where the number of new apartment units is increasing. A Shinsegae Casa representative stated, "As of the first half of this year, the number of new apartment units in Daejeon has increased by approximately 110% compared to the same period last year. We plan to use this location as a base to expand our reach to customers in the central region." Industry experts also note that non-metropolitan areas are experiencing a shortage of supply relative to demand. One industry insider commented, "Although there are many new apartment move-ins in regional cities, there is a lack of spaces where customers can directly experience and purchase premium furniture and mattresses."

Shinsegae Casa plans to open a second Materasso specialty store in Busan in the second half of this year and is considering additional locations in Daegu, the Gyeongsang region, and the Gangwon region. The company intends to expand the number of Materasso specialty stores to 30 nationwide, using major regional cities as bases to increase its market share in the premium sleep sector.

This trend is spreading throughout the industry. Last month, Simmons opened regional flagship stores, such as Simmons Mansion Geoje, Iksan, and Jeju, which are premium experiential stores. Vegan mattress brand "N32" also entered the regional premium market by opening the N32 Studio Daegu branch. Ace Bed, too, opened its large-scale premium experiential store "Ace Square Gunsan" last month and is strengthening its customer engagement marketing.

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