The revamped Shinsegae department store in Gangnam will officially open on Friday.
The store’s concept is heavily inspired by the high-end department store chains Le Bon Marche in France and Saks Fifth Avenue in the U.S.
The Shinsegae Group, which is Korea’s second-largest retailer, has added six new floors to the annex building of its store in the affluent area of southern Seoul. This makes the 86,500 square-meter store the largest department store in Seoul. It also now houses 1,000 brands, up from about 600 brands previously.
“The Gangnam store is important in every way. We are striving to suggest shopping as a lifestyle rather than to seek for simply sales growth,” said Jang Jae-young, CEO of Shinsegae Department Store, at the press briefing to mark the opening.
The company has seen sales come to a standstill over the past few years, mainly due to the global economic slowdown as well as competition from other retail channels such as e-commerce.
The revamped store is designed to attract people who prefer a luxurious in-store shopping experience and Shinsegae expects it to be a game changer. Its Gangnam branch is expected to generate 1.7 trillion won ($1.2 billion) in its first year and 2 trillion won by 2019.
Brands within the store are categorized into four major themes – shoes, contemporary, kids and living. Products Items are divided based on themes rather than by brand names. Hence luxury brands, such as Christian Louboutin, and domestic brands, such as Soda, mingle in the same zone.
For those preparing for marriage, the store has dedicated a whole floor to wedding gifts and lifestyle goods. There, you can find anything from luxury goods, such as jewelry and watches worth hundreds of millions of won, to silver three-story tea trays or zen-style flower arrangements.
“According to our research, people from countries exceeding gross domestic production per capita of $30,000 value the experience of shopping, its process and services they receive. We think the Korean market is ready for this,” said Ryu Sin-yul, vice president of the Gangnam store.
Shinsegae plans to open five more stores this year — Busan Centum City Mall in March, an urban duty free store in May, two stores in Gimhae of South Gyeongsang Province and Daegu in June and December respectively as well as Hanam Union Square shopping mall in September.
“We are not trying to compete with (other retail powerhouses such as) Hyundai or Lotte. We will create a new generation of shoppers who have never been to department stores before,” Ryu said.