New stores in 10 years from all three companies… Interest level↑
Consumer sentiment’explosion’ suppressed by the prolonged Corona 19
Differentiating Positioning by Promoting’Experience Space’
The Hyundai Seoul, Yeouido, Seoul./Photo = News 1
‘The Hyundai Seoul’ in Yeouido, Seoul, which opened on the 26th of last month, is popping a’jackpot’ amid the spread of a novel coronavirus infection (Corona 19). It is interpreted that consumers’ interest has been high due to the opening of new stores in 10 years across the three department stores, such as Lotte and Shinsegae, and consumption sentiment of those tired from Corona 19 has exploded. In addition, it is analyzed that the fact that it is a’new format’ department store stimulated the curiosity of visitors.
According to industry sources on the 9th, The Hyundai Seoul is estimated to have achieved 10.2 billion won in daily sales on the 28th of last month, the first Sunday after the store opened. Hyundai Department Store(93,100 +3.44%)This is the record for a single store day since the group was founded. After the pre-opening on the 24th of last month, the number of visitors was estimated to reach 1.5 million by the 1st of this month, and sales during this period were reported to reach 37.2 billion won.
Citizens who visited’The Hyundai Seoul’, which opened in Yeouido, Seoul in the morning of the 24th of last month, are waiting in line waiting for the opening. /Photo = Yonhap News
The early popularity of The Hyundai Seoul was influenced by the fact that it was the opening of a new department store store in 10 years above all else. The Hyundai Seoul is the first store in Seoul that Hyundai Department Store opens 19 years after the Mokdong store in 2002. Of the three department stores, it has been 10 years since Lotte Department Store Gimpo Airport in 2011 to open a new store in Seoul. This is why consumers’ interest is inevitably high.
Seo Yong-gu, a professor of business administration at Sookmyung Women’s University, said, “Even though the level of store renewal has changed, the opening of The Hyundai Seoul was an event that was bound to attract the attention of consumers because there was no new department store opening for a while.” He said, “If the store was located outside of Seoul, it would have been less accessible, such as having to go by car, but The Hyundai Seoul is located in the city center of Yeouido, so more people could have visited it,” he said.
The Hyundai Seoul, Yeouido, Seoul./Photo = News 1
The fact that consumer sentiment, which had been suppressed by’social distancing’, was erupted also seems to have had an effect. Signs that consumer sentiment has risen in spring is also seen in other department store sales. During the three days of the March 1st holiday, Shinsegae and Lotte Department Store’s sales increased 24.9% and 26.1%, respectively, compared to the same period two years ago before Corona 19.
Regarding this, experts evaluated that the’opening timing’ was good. Professor Seo said, “If the store opened in the early days of the spread of Corona 19, it may not have received attention so far.” Explained. Eunhee Lee, a professor of consumer science at Inha University, also said, “This is the time when the desires of people who have suffered from Corona 19 for a year have erupted.”
‘Sounds Forest’ located on the 5th floor of The Hyundai Seoul in Yeouido, Seoul./Photo = Yonhap News
In addition to environmental factors, the Hyundai Seoul’s unique concept, such as the’experience space’, differentiated it from general department stores, which also influenced the analysis. The Hyundai Seoul has decorated 49% of the total business area as landscaping and rest areas. This is a big difference compared to the landscaping and relaxation spaces of 15 other Hyundai Department Store stores, which occupy 35% of the business area. A 12m high artificial waterfall was installed on the 1st floor, and the 5th floor was decorated with an artificial forest named’Sounds Forest’. Natural grass and about 30 real trees were planted here.
Professor Seo said, “The Hyundai Seoul is emphasizing that it is different from existing department stores by omitting the word’department store’ from its name.” It does not do it, so it has a very unique positioning, and consumers will want to come at least once.”
Professor Lee also explained, “The interior that seems to be in nature while being in an indoor space provides consumers with a different experience,” and said, “It is tailored to the tastes of today’s consumers who value experience and experience.” He added, “However, in order to maximize sales even after the opening effect, it is necessary to constantly study how to connect visitors’ in-store experiences with consumption.”
Reporter Lee Mi-kyung, Hankyung.com [email protected]