Junho Jung of Lotte Department Store: "Expanding Investment in VIPs and Young Customers... Core Strategy for K-Department Stores"

Participation as a Speaker at the World Department Store Summit
The World's Largest Forum for Future Department Store Strategies
Expansion of Pop-up Stores and Premium Services
Increased Sales, Profits, and Customer Numbers
Record Attendance of Over 300 Industry Participants

"Tailored programs targeting younger customers and VIPs are the key strategy driving the growth of department stores."

On June 12, Junho Jung, CEO of Lotte Department Store, spoke as a presenter at the 16th 'IGDS World Department Store Summit' (WDSS), co-hosted by Lotte Department Store and the International Group of Department Stores (IGDS) at Lotte Hotel Seoul in Sogong-dong, Jung-gu, Seoul. He introduced various initiatives being pursued by domestic department stores to strengthen their competitiveness, and made the above statement.

Joonho Jung, CEO of Lotte Department Store. Provided by Lotte Department Store

Jung's strategy for enhancing the competitiveness of domestic department stores can be summarized in four main areas: expanding investment in major cities including Seoul; broadening product categories such as luxury, beauty, food, children's goods, sports, and electronics; strengthening customer experience to secure loyal customers; and digital transformation across all business operations.

Among these, he emphasized the importance of events designed to attract new, younger customers with purchasing power to department stores. Notable examples include the 'European-style Christmas Market' held every winter since 2023 at Lotte Department Store Jamsil, the annual in-house running event 'Style Run' in the fall, the 'Pokemontown' event leveraging intellectual property (IP), and the 'Myeongdong Festival' co-hosted with the Seoul Metropolitan Government in the Lotte Town Myeongdong area.

Jung stated, "Pop-up stores are a casual and comfortable way to bring in younger customers," and added, "Through 340 pop-up events held last year, Lotte Department Store Jamsil saw a 28% increase in customer numbers compared to the previous year, with the proportion of customers in their 20s and 30s rising to 41%."

He also highlighted the importance of customized services for the top 5% VIP customers, who account for 62% of Lotte Department Store's total sales. These differentiated services include private invitation-only events with luxury brands such as high-end jewelry, VIP lounges comparable to first-class airline cabins, priority reservations for concerts and sports events, and premium wine pairing experiences, all aimed at increasing customer satisfaction.

Jung explained, "We are currently communicating with VIP customers through our application (app), operating all services and communities in a personalized way, and providing membership-based benefits. Although these programs require significant investment, they result in increased sales and profits through our VIP customers."

Lotte Department Store CEO Junho Jung is delivering the opening speech at the 16th 'IGDS World Department Store Summit (WDSS) 2025,' co-hosted by Lotte Department Store and the International Group of Department Stores (IGDS). Photo by Lotte Department Store

The World Department Store Summit is the largest industry forum where major department store executives from around the world gather annually to discuss future strategies. The IGDS, headquartered in Zurich, Switzerland, has over 40 member department stores from 38 countries.

This event, held in Korea for the first time, attracted a record number of over 300 participants, reflecting strong interest in future management and retail innovation. Under the theme "The Best Ways to Captivate Customers," the event featured speakers and panelists such as Adil Mehboob-Khan, CEO of Liberty Department Store (UK); Fanya Chandler, CEO of Nordstrom Department Store (USA); Yugo Hiramatsu, General Director of Shibuya Parco (Japan); and Alberto Tripodi, Chief Retail Officer of Moncler. From Korea, speakers included Jung, Seunghwan Kim, CEO of Amorepacific; Jungwoo Hong, CEO of Hagohouse; and Junbeom Lee, CEO of GFFG, who delivered lectures on K-beauty, K-fashion, and K-food.

Jung stated, "This event is the first step in showcasing the competitiveness of Korea's retail industry to the world and paving the way for K-brands to expand overseas. Lotte Department Store will also strengthen its position as an innovative retailer by cooperating with department stores and partners worldwide to support the growth of K-brands."

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