The Hyundai Seoul, a must-visit for young foreigners

The Hyundai Seoul, the largest department store in the South Korean capital, topped the 1 trillion won mark in annual sales at the fastest pace in the industry by attracting young foreigners by opening a series of pop-up stores featuring different global K-pop stars.

Hyundai Department Store Co. said on Sunday the shopping mall logged sales of 1 trillion won ($769.2 million) by Dec. 2 this year. It took 33 months for the annual revenue of the branch of the country’s third-largest department store operator to surpass the 1 trillion won mark, 26 months faster than the previous department store branch record of larger rival Shinsegae Inc.

The Hyundai Seoul enticed young customers, not only locals but also foreigners, with revolving pop-up stores dedicated to K-idols stars while selling famous brands popular among young people.

“The Hyundai Seoul has become a Korean landmark with out-of-box-thinking in terms of a department store as a shopping place by presenting a new paradigm,” said Hyundai Department Store CEO Chung Ji Young.

“The world-class space creation capability and efforts to discover novel content contributed to the achievement of topping 1 trillion won in sales over the shortest period.”

SURGING SALES TO FOREIGNERS

The Hyundai Seoul opened on Feb. 26, 2021, enjoyed an 891.7% jump in sales to foreigners in the first 11 months of 2023 from a year earlier, although it is located in Yeouido, Seoul’s main finance and investment banking district, not in Myeong-dong, the most famous international tourist spot in metropolitan Seoul. The growth is nearly triple the 305.1% increase in sales to foreigners at all Hyundai Department Store branches during the same period. 

In 2022, the Hyundai Seoul reported 731.1% growth in revenue from foreigners.

Foreigners in their 20s and 30s made up 72.8% of its sales to non-locals, indicating that the branch has become a hot spot for global Generation MZers – a demographic comprising millennials and members of Generation Z.

To attract them, it opened pop-up stores featuring different K-pop stars – BTS in March, Le Sserafim in May, Ive in June, Itzy in August and Blackpink in September.

The Hyundai Seoul focuses more on online fashion brands such as Matin Kim and Sie, which are popular among young customers, by opening their offline stores rather than luxury goods boutiques. The branch does not have stores of Hermès International S.A., Louis Vuitton Malletier and Chanel – French luxury fashion houses regarded as key traditional  brands of South Korean department stores.

The strategy has helped the Hyundai Seoul offset sluggish sales of high-end fashion items amid a slowdown in Asia’s fourth-largest economy.

The mall reported 113.2% growth in sales of fashion products this year, compared to its first year.

Write to Hun-Hyoung Ha at hhh@hankyung.com
 
Jongwoo Cheon edited this article.