Lotte Department Store Incheon Completes Three-Year Renovation, Sets Sights on Becoming Western Metropolitan Area's First 1 Trillion Won Branch

Lotte Department Store's Incheon branch has completed its renovation and is embarking on its challenge to become the first department store in the western metropolitan area to reach 1 trillion won in annual sales.

On April 28, Lotte Department Store announced that the Incheon branch will hold its "grand opening" on May 1, marking the end of a three-year-long makeover. The Incheon branch introduced the futuristic food hall, "Food Avenue," in December 2023, followed by the launch of an experiential premium beauty hall in August of the following year. Last year, it successively opened the largest premium kids' zone in the western Gyeonggi region, as well as women's fashion and luxury fashion halls.

Lotte Department Store Incheon Branch exterior. Provided by Lotte Department Store

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According to Lotte Department Store, the Incheon branch posted a year-on-year sales growth rate in the 20% range in the first quarter of this year, ranking among the top across all branches. Last year, it set a new annual sales record of 830 billion won. Despite periods of business suspension for certain product categories during the three-year renovation, sales increased by more than 10% compared to 2022. Sales from VIP customers, a key indicator for premium department stores, also grew by about 20% last year. In addition, the proportion of Incheon branch customers among the "Avenuel Black" group-an elite group limited to the top 777 customers selected annually across all branches-has increased significantly.

Food Avenue played a driving role in expanding the new customer base and encouraging repeat visits. This was achieved by introducing "Lepicerie," Lotte Department Store's futuristic grocery store, for the first time, and attracting numerous renowned restaurants from across the country, global food and beverage brands, and popular dessert stores. The cumulative number of customers who visited the newly renovated food hall exceeded 15 million as of last year.

Customers are shopping at 'Food Avenue,' a futuristic food hall located on the basement level 1 of Lotte Department Store Incheon Branch. Provided by Lotte Department Store

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The next goal for the Incheon branch is to become the "Next 1 Trillion Won Department Store." The core strategy for achieving this involves expanding the "high-end watch" and "high-end jewelry" segments within its luxury section. With more than 50 luxury stores now open-including the luxury fashion hall launched on the second floor in December 2023-sales in this category are on the rise. The proportion of luxury goods sales, which stood at 25% in 2024, surpassed 30% in the first quarter of this year.

The Incheon branch is also moving forward with its "Next Town" initiative to become Lotte Department Store's third "Lotte Town" after Myeongdong and Jamsil in Seoul. Lotte Town refers to a multi-complex district that integrates Lotte's shopping, cultural, and entertainment elements. With the completion of the first phase, the department store renovation, the second phase-modernizing the terminal-will start in the second half of this year. The Incheon Integrated Bus Terminal, directly connected to the department store, serves as a transportation hub for approximately 7,000 people per day. Plans are in place to relocate the aging terminal to an adjacent site, and there are considerations for complex development on the former terminal site in the future.

Jung Dongpil, manager of the Incheon branch of Lotte Department Store, stated, "With the completion of our three-year premium renovation, we are now ready to enter the era of the 'Next 1 Trillion Won Department Store.' We will continue to grow as a next-generation premium department store with regional and beyond-regional competitiveness through radical innovation in the customer experience."

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