Seoul’s largest department store war… 13 soccer fields,’The Hyundai Seoul’, appeared

The largest view of’The Hyundai Seoul’, which opens on the 26th in Seoul. It will be built in a scale of 7 floors below ground to 8 floors above ground next to Park One Building in Yeouido, Seoul. [사진 더현대 서울]

‘The Hyundai Seoul’, which will become the largest department store in Seoul, will be officially opened in Yeouido, Seoul on the 26th following pre-opening on the 24th to 25th. It has been 10 years since Lotte Department Store Gimpo Airport in 2011 that a department store opens in Seoul. Hyundai Department Store removed the word department store from its ambition to make’The Hyundai Seoul’ a landmark that focuses on relaxation by breaking away from the existing department store.

In the department store industry, it is a concern whether The Hyundai Seoul will be able to make a’big hit’ after Hyundai Department Store’s Pangyo branch. The Pangyo branch, which opened in the largest scale in the metropolitan area in 2015, exceeded KRW 1 trillion in annual sales in the shortest period (5 years and 4 months) among domestic department stores through a differentiated food store and luxury strategy. The competition between the three companies of Lotte, Shinsegae and Hyundai Department Store is on the rise, and we will point out by points of observation.

The Hyundai Seoul, which has 7 floors below the ground and 8 floors above the ground next to the Yeouido Park One Building, has an operating area of ​​89,100 square meters (27,000 pyeong). It is the size of 13 soccer fields. There are a total of 2248 cars in the parking lot from the 6th basement level to the 3rd basement level.
As a result, Hyundai Department Store acquired the title of Seoul’s largest department store at the same time following the Pangyo branch (91,416㎡), the largest in the metropolitan area. Before The Hyundai Seoul, the Shinsegae Department Store Gangnam branch (86,500㎡) was the largest. Shinsegae Department Store is advocating, “After the Gangnam branch renewal in the second half of the year, it will increase by about 3300m2 and bring back the title of Seoul’s largest department store.” For reference, the Shinsegae Busan Centum City store (293,905㎡) has a Guinness record that is the world’s largest department store as well as in Korea. Lotte Department Store plans to overtake the Hyundai Pangyo branch with the opening of the Dongtan branch in Gyeonggi-do (93,958㎡) in June.

Sounds Forest, a resting area on the 5th floor of The Hyundai Seoul. [사진 더현대 서울]

As seen in the recent growth of Naver and Coupang, online and non-face-to-face shopping is on the rise. What is the reason why department stores are obsessed with the size of offline stores? A department store official said, “As online shopping grows, there is a perception that it is difficult for offline retailers to survive without a space that can hold customers all day long,” he said. “The proportion of experience-based spaces is increasing so that customers stay longer.” The Hyundai Seoul has decorated half of the total business area with interior landscaping and customer rest areas.

A view of the lobby on the 1st floor of The Hyundai Seoul. You can see’Waterfall Garden’ with a 12m high artificial waterfall. [사진 더현대 서울]

The Hyundai Seoul will have a battle with Shinsegae Times Square and Lotte Yeongdeungpo, about 2.5 km away from the commercial area. The Hyundai Seoul is a new and well-known food and beverage (F&B) that has been reputed as a restaurant, and there is a lot of prospects that it will enjoy the effect of attracting customers for the time being.

On the first basement floor, the food hall’Tasty Seoul’ will be larger than the two soccer fields combined. Egg Slot, which sells American coffee brand Blue Bottle and sandwiches, will be the first in a domestic department store. It is a collection of popular food and beverage businesses, such as a barbecue specialty store and Taegeukdang, where Mongtan, Turak, and Geum Pork restaurants collaborated. The main target is the MZ generation (millennials in their late teens to 30s + Z generation) who are bright on the trend.
When Pangyo Store opened, it was the first to attract New York’s Magnolia Cupcakes and enjoyed the effect of a’munjeonseong city’. Hyun-gu Shin, head of the food division at Hyundai Department Store (Executive Vice President), said, “We have been working hard on F&B, which is our strong point again,” and said, “The food hall is advantageous for attracting customers and can increase sales.”

The Hyundai Seoul Floor composition and major stores. Graphic = Reporter Park Kyung-min [email protected]

However, in the department store industry, The Hyundai Seoul, which has not been able to enter the three major luxury goods such as Louis Vuitton, Chanel, and Hermes, is expected to have a limit to sales growth. Currently, the top five department stores in sales have at least one of the three luxury goods.

Top 5 department stores in Korea. Graphic = Reporter Cha Junhong [email protected]

For this reason, Louis Vuitton, which is regarded as an introductory brand for luxury goods, is a homework that must be attracted to department stores. An official at Hyundai Department Store said, “Currently, we are in consultation with a number of famous luxury brands such as Louis Vuitton. We plan to continue to reinforce luxury brands even after the opening.”

Reporter Baek Minjeong [email protected]