Hyundai Department Store Pangyo Branch achieved sales of 1.74 trillion won last year… Joined the’Group 1 Club’ after 5 years and 4 months of opening
Major effects such as providing Korea’s highest level of MD competitiveness and new experience, possessing a purchasing customer base, and increasing customers in large-area commercial areas
“We will make a leap forward as a representative department store in Korea beyond the metropolitan area through reinforcement of luxury goods and renewal of all floors”
[코리아포스트 한글판 정상미기자] Hyundai Department Store’s Pangyo branch exceeded 1 trillion won in annual sales after 5 years and 4 months of opening. It has won the title of’Joining a trillion club in the shortest period of a domestic department store’.
In particular, the Hyundai Department Store’s Pangyo branch breakthrough is more meaningful in that it is a result achieved through the prolonged’Corona 19′ and’offline store stagnation’ this year. Moreover, the Pangyo branch’s growth is expected to continue in the future as luxury brands are planned to be attracted and all floor renewals are planned after the second half of this year, as well as development of nearby commercial areas.
Hyundai Department Store announced on the 11th that the Pangyo branch recorded a cumulative sales of 1.74 trillion won last year (January to December). This is a 9.4% increase from the 2019 sales (920 billion won).
An official at Hyundai Department Store said, “The sales of the Pangyo branch exceeded 1 trillion won in 5 years and 4 months since the opening in August 2015 (August 21), and it broke the record in the shortest period among domestic department stores.” It also set a record for the first ‘1 trillion department store’ outside of Busan.”
Above all, Hyundai Department Store’s Pangyo branch’s sales breakthrough of 1 trillion is attracting attention because of the prolonged’Corona 19′, a result of which offline distribution channels are experiencing great difficulties. Actually, among the 15 stores in Hyundai Department Store, only two stores that saw sales increase in 2020 from the previous year are the Pangyo branch and the Apgujeong main branch (3.5% increase from the previous year). That means that the business environment of department stores was not smooth.
In this regard, Jung Ji-sun, chairman of Hyundai Department Store Group, recently said, “It is significant that Pangyo Branch achieved sales of 1 trillion won even in difficult business environments such as the prolonged Corona 19.”
(Hyundai Department Store Pangyo Branch Annual Sales / Unit: KRW 100 million)
| division | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| take | 3,000 | 7,250 | 8,000 | 8,800 | 9,200 | 10,074 |
Hyundai Department Store’s Pangyo branch, based on the largest operating area in the metropolitan area (92,578㎡, 28,005 pyeong), opened for only 4 months in the first year of opening, reaching KRW 300 billion in sales, and then growing by 5-10% every year. Continues. Considering that sales in 2016, the year after the opening, were 725 billion won, sales surged by nearly 40% in four years.
Following the explosive growth of the Pangyo branch, Hyundai Department Store is the driving force behind 1 trillion in sales. They cited efforts for shared growth.
Above all, it is evaluated that the highest level of MD competitiveness in domestic department stores was a big foundation for the sales of the Pangyo branch exceeding 1 trillion won. Since its opening in 2015, the Pangyo branch has launched a series of global luxury brands such as Louis Vuitton, Cartier, Tiffany, Bulgari, and Piaget, and has a lineup of luxury goods comparable to those of the Gangnam department store in Seoul.
In addition, the largest food hall in Korea (13,860m2, 4,192 pyeong), which is twice the size of a soccer field, cannot be missed. In the Pangyo branch, there are 130 domestic and international restaurants and food and beverage (F&B) stores, the largest in the department store industry. There are many overseas restaurants that were first introduced in Korea, including Italian premium foodstuff specialty store’EATALY’, French bakery specialty brand’Montsang Claire’, and New York brunch café’Sarabes Kitchen’. In addition, there are famous local restaurants such as’Samsong Bakery’, a famous Daegu bakery,’Boominok’, a soup restaurant with 65 years of tradition, and’Shinseungbanjeom’, a restaurant in Chinatown in Incheon. There are many evaluations in the industry that Pangyo Branch has raised the quality and quality of the’food hall’ in the distribution industry. Thanks to this MD competitiveness, 26 million customers visited the Pangyo branch last year alone. This is 2.5 times higher than last year’s average of 10 million visitors to all 15 stores of Hyundai Department Store.
In addition, it is one of the top contributors to exceeding 1 trillion in sales in the Pangyo branch to show customers shopping and cultural contents that they have never experienced before. With the concept of’Sell Experience’, Pangyo Branch has tried to differentiate itself from’experience’, the core competitiveness of offline stores, beyond just product sales space.
The representative one is the Hyundai Children’s Book Art Museum, which is the only domestic department store operated. The Hyundai Children’s Book Art Museum has filled the space (2,736㎡, 830 pyeong) that can accommodate 40-50 clothing stores with two exhibition rooms and 6,500 picture books. Since its opening in 2015, about 750,000 people have visited until last year, so it is a representative attraction in Pangyo and is playing a role of’killer content’.
Pangyo, a complex cultural space, ‘1st floor open plaza (660㎡, 200 pyeong)’ and 10th floor culture hall (760㎡, 230 pyeong) also continuously show differentiated contents such as various exhibitions, cultural performances, and luxury pop-up stores. We are providing customers with new value that they have never experienced before. In fact, in October last year, the’Art Museum’, which showcased works by famous artists such as Yayoi Kusama and Whanki Kim, was held, and about 100,000 customers visited it in a month. An official at Hyundai Department Store said, “Expanding customers’ experiences through differentiated and new content that can only be found at Hyundai Department Store’s Pangyo branch led to positive effects such as customer inflow and sales expansion.”
In addition, the increasing proportion of customers in large-area commercial districts along with the customer base with purchasing power in key commercial districts contributed to the breakthrough of 1 trillion in sales in Pangyo. In Bundang and Pangyo, Gyeonggi Province, where Pangyo is located, the income level is relatively higher than that of other regions, and because it is sensitive to trends, it is called the’second Gangnam’. Therefore, the number of VIP customers at Pangyo branch has increased to a level similar to that of Hyundai Department Store Apgujeong Main Branch and Trade Center branch located in Gangnam, Seoul last year.
The number of expedition customers visiting the Pangyo branch in Yongin, Anyang, Suwon (Gwanggyo), and Yeoju, which are more than 10 km away from Hyundai Department Store’s Pangyo branch, is also increasing every year. The share of sales in metropolitan commercial areas also increased from 38.6% in 2015, the first year of opening, to 55.3% last year. This is more than 20%p higher than the average of all 15 stores in Hyundai Department Store’s metropolitan area (30%).
In addition, efforts for win-win and shared growth with local commercial districts such as Seongnam and Pangyo in Gyeonggi-do also contributed to the growth of the Pangyo branch. Pangyo branch signed a business agreement with Seongnam City in 2019 to cultivate’pie’ and create a virtuous cycle structure in which the local economy is revitalized. Accordingly, the Pangyo branch was opened in the form of a pop-up store to pioneer sales channels for startups and designer brands in Seongnam City, and to strengthen the competitiveness of the local traditional market, it is creating synergy with local commercial districts by continuing efforts for shared growth, such as supporting food disposers and replacing furniture. .
Hyundai Department Store is planning to grow the Pangyo branch into a’Korea’s representative department store’ with this sales breakthrough of 1 trillion. To this end, it is planning to attract additional luxury brands and renew all floors, and it is a strategy to accelerate the acquisition of potential customers through the development of nearby commercial areas.
First of all, we will reinforce our luxury lineup. After the second half of this year, the Pangyo branch will be introducing more than 10 global famous brands such as French jewelry’Boucheron’ and British fashion brand’Burberry’, and plans to continue to attract luxury brands. In this regard, an official at Hyundai Department Store said, “In the case of’Hermes’, which is called as one of the three luxury goods, we are positively considering starting construction in the second half of this year when the goal is to open next year. There is” he said.
In addition, about 15 billion won will be invested to promote the renewal of the entire Pangyo branch in stages. First, it is planning to introduce a new ‘2030 VIP Lounge for customers only’ and a luxury men’s hall aimed at Young & Rich (young and wealthy) within this year. In addition, after next year, the food center on the first basement floor and the cosmetics shop on the first floor will be renewed, and various specialty halls such as the luxury shoes specialty hall (shoe library) and the children’s specialty hall (kids park) will be renovated.
In addition, the fact that the development of commercial districts around the Pangyo branch is accelerating is expected to serve as a positive for the future. Companies are in full swing this year in the 2nd Techno Valley, located within 3km of Pangyo Branch, and the 3rd Techno Valley is also in full swing with the goal of completion next year. 5,700 households are also scheduled to move into new apartments nearby.
Hyundai Department Store President Kim Hyung-jong said, “We plan to grow the Pangyo branch beyond the metropolitan area as Korea’s number one’shopping landmark’ by helping to revitalize the local economy along with super luxury strategies such as attracting luxury brands. Department stores will also be fostered as a’mega life platform’ that provides differentiated values to customers’ lives.”
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