Shinsegae Department Store expands its diamond business

South Korea's Shinsegae Department Store is expanding its diamond business.

Shinsegae announced on Thursday that it has entered into a strategic partnership with the global diamond wholesaler A.A. Rachminov Diamonds.

Founded in 1940, Rachminov specializes in diamond raw material wholesaling and processing. It is highly regarded for the quality of its diamonds, with more than 60% of its sales coming from transactions with luxury jewelry brands.

Through this partnership, Shinsegae Department Store expects to establish a stable supply chain by directly sourcing diamonds from Rachminov for its in-house luxury jewelry brand "Addir."

Additionally, Shinsegae plans to learn from Rachminov's expertise in purchasing raw diamonds, processing and running the wholesale business, with plans to expand into diamond wholesaling both domestically and internationally.

"Through this strategic alliance with a global diamond wholesaler, we are exploring entry into the high-growth jewelry wholesale and retail sectors. We will present special content that enhances customers' lifestyles by leveraging Shinsegae's distribution and brand management expertise," said a Shinsegae Department Store representative.

Write to Sun A Lee at suna@hankyung.com