By Lee Hyo-sik
Lotte, Shinsegae and other major department store chains here have rushed to upgrade existing stores to attract young and wealthy shoppers in a bid to survive the ongoing consumption slump.
So far tens of billions of won have been spent on upgrading their shops to offer more facilities to customers.
Major retailers have also launched aggressive marketing campaigns to beat the current sales slump in the hope of gaining an upper hand over rivals once the economy picks up.
Lotte Department Store, the country’s largest department store chain, unveiled its refurbished Young Plaza in downtown Seoul last Friday.
It mainly targets young fashion savvy customers, and has undergone a year-long renovation.
It has also increased the number of private-label apparel brands to 53, seeking to catch the eye of the pool of workers within the downtown vicinity. Both the grocery section and the outdoor clothing section have also been expanded.
“We don’t think that we would be able to attract shoppers through old-fashioned shops and conventional marketing strategies, particularly in this economic downturn. So we decided to upgrade Young Plaza to turn it into a fashion hub for young people,” said a spokesman for Lotte Department Store.
The company has extended its facelift project to a number of its branches across the capital city in a bid to meet diverse consumer demands.
Its store in Jamsil, southern Seoul, has doubled the floor space for cosmetics counters to attract more female customers in their 20s and 30s.
“We completed renovating our Jamsil store in August. Among others, we have increased the number of cosmetics brands to 48 from the previous 28. We have also set up skincare rooms where customers can try on cosmetics and other products, prior to purchase,” the spokesman said.
The upgrades are all part of a plan to get customers to spend more.
Shinsegae Department Store completed renovating the first and second floors of its southern Seoul branch in late August and opened more counters offering luxury items and cosmetics.
Its Gyeonggi Province branch in Yongin upgraded its food section to transform it into a premium grocery store by introducing more imported food products.
“In our southern Seoul branch, we spent quite a lot of money to strengthen our luxury goods and cosmetics lines, despite sluggish sales. But we had to do so in order to attract wealthy customers. The store has also begun drawing Chinese and Japanese tourists seeking premium products,” a Shinsegae spokeswoman said.
Hyundai Department Store, known to cater for traditionally wealthy conservative residents in southern Seoul, has also jumped on the bandwagon by renovating its outlets in the area.
The upgrading process for Hyundai’s Apgujeong branch started in May and is not expected to be completed until March next year, with its Trade Center branch scheduled to open by July.
When completed, the new Apgujeong store will boast a larger space for counters selling high-priced watches and other luxury items, while the trade center branch will see its shopping floor expand by 55 percent to 52,600 square meters and invite more brands selling luxury products.
Galleria Department Store, also in southern Seoul, opened a new luxury grocery section named Gourmet 494 at its Apgujeong branch last Friday.
Galleria said the department store plans to transform all its floors into a high-end, luxurious shopping space by inviting more foreign luxury brands.