Input 2021.02.22 07:00
‘Future Department Store’, half of which is a space for relaxation and culture
The Hyundai Department Store opens six years after Pangyo, the largest in Seoul with 13 soccer fields (89,100㎡). It was named The Hyundai Seoul with the ambition to make it a future-type department store representing Seoul.
However, attention is being drawn to the possibility of success due to the lack of three luxury goods, such as Hermes, Louis Vuitton, and Chanel, which are considered the success factors of department stores. It is pointed out that there is a lack of’bait’ to attract them, although it is necessary to attract VIPs, the big hand of department stores, to increase sales.
According to the Financial Supervisory Service on the 22nd, sales of all three department stores including Lotte (-15.2%), Hyundai (-9.5%), and Shinsegae (-6.6%) declined last year, while Shinsegae Gangnam Store, Centum City Store, and Hyundai The department store headquarters and the Galleria Department Store’s luxury store saw sales increase. Consumption sentiment worsened due to the strengthening of social distancing in the aftermath of the coronavirus infection (Corona 19), but it is an analysis that those who cannot travel abroad have increased consumption of luxury goods.
The Hyundai Seoul introduced luxury goods such as Gucci, Balenciaga, Burberry, Prada, Bulgari, Tiffany, IWC, and Boucheron, but failed to attract the three major luxury goods with a large attracting effect. The department store side said, “There are no department stores in the metropolitan area that have entered the three major luxury goods at the same time as they opened.”
However, there are many skeptical views in the industry as to whether this can be realized early. Louis Vuitton, the most popular of the three luxury goods, is already located in the Shinsegae Yeongdeungpo branch, a 7-minute drive from The Hyundai Seoul. This store has the largest sales among Louis Vuitton stores in Korea. In Louis Vuitton, where only one store per commercial district is opened, there is no reason to build a new store or move stores in this area. Galleria Gwanggyo, which opened last year, has not yet been able to attract three major luxury goods.
Some say that Hyundai is pursuing a plan to move the Louis Vuitton store in Mokdong to The Hyundai Seoul. In response, an official at Hyundai Department Store dismissed it, saying, “Because it is a nearby branch, such speculation seems to come out.”
Last year, the top store in Hyundai Department Store sales was Pangyo, which ranked fifth among all department stores. The Trade Center store, the representative store in Seoul, is ranked 7th out of the total, and it is in a desperate situation to restore pride in Seoul. Earlier, Chairman Jung Ji-sun of Hyundai Department Store Group ordered, “Develop The Hyundai Department Store as the best landmark in Korea and a flagship store that raises the group’s status to the next level.”
The Hyundai Seoul emphasizes rest, culture, and food. Nearly half of the store’s space (11,240 square meters) was constructed as a landscape space, and an art museum and a cultural center were also created with great importance. In addition, an unmanned store targeting the MZ generation (millennials + generation Z, born 1980-2004), limited edition sneakers exchange’BGZT Lab’, and the first store in Asia of H&M’s sister brand’Arquette’ will open. Recently, it has also released ZionT, music and music videos.
An official in the department store industry said, “There is a trend of decreasing customer visits to offline stores due to the spread of online consumption and the coronavirus.” .