Shinsegae Gangnam’s annual sales to surpass $2.2 bn for first time this year

Shinsegae Department Store in Gangnam [Courtesy of Shinsegae Department Store]

Shinsegae Department Store in Gangnam, southern Seoul, is poised to achieve an unprecedented milestone of more than 3 trillion won ($2.2 billion) in annual sales this year, marking the first among single department stores in South Korea.

According to sources on Sunday, Shinsegae Department Store Gangnam has achieved a cumulative sales of nearly 2.2 trillion won at the end of September, marking a growth of over 5 percent compared to a year earlier.

If the upward trend continues, the store is expected to breach the 3-trillion-won mark in cumulative sales by the end of the year. No single store has crossed the 3 trillion won sales threshold to date among the major five department store chains in Korea, which include Lotte, Shinsegae, Hyundai, Galleria, and AK.

Shinsegae Department Store Gangnam secured its leading position among 70 key department store branches in the country last year, with annual sales totaling 2.84 trillion won.

Since its inception in 2000, the branch has come a long way, surpassing the 1 trillion won sales mark for the first time in 2010. After overtaking Lotte Department Store’s main branch in Myeongdong, central Seoul, to claim the No. 1 position in 2017, it has consistently held that position for seven years.

Following Shinsegae’s Gangnam branch, Lotte Department Store’s Jamsil branch in southern Seoul came in second place with sales of 2.6 trillion won last year.

The final quarter of the year typically sees the highest sales for department stores due to the high demand for gifts, especially during Christmas, and the sale of high-end clothing such as goose-down jackets, which is favored during the cold weather.

The first week of October already indicated the strong performance of Shinsegae Department Store, with overall sales increasing by 17 percent compared to the same period last year.

Shinsegae Department Store Gangnam enjoys a strategic location with about 1.2 million daily visitors and direct access to Gangnam’s main thoroughfare Gangnam-daero.

Additionally, the presence of large luxury apartment complexes, including the recently developed Raemian One Bailey, in the affluent Gangnam area facilitates the acquisition of VIP customers.

The store excels in catering to high-end consumers, as VIP customer sales account for 49.6 percent of its total, 13 percent higher than the average of 36.3 percent seen in other Shinsegae stores. Furthermore, the number of VVIP customers who spent over 100 million won last year exceeded 2,000, making Shinsegae Gangnam the leader in this category.

Given the significance of VIP customers, Shinsegae Department Store allocates substantial efforts to their retention and management. The VIP customer classification includes Trinity, Diamond, Platinum, Gold, Black, and Red, and Shinsegae Gangnam has further subdivided these into eight grades.

Each grade has a dedicated lounge, with the First Lounge on the 10th floor, established in August last year, receiving acclaim for its 430-square-meter size, over 60 seats, and ample natural lighting through its windows.

Shinsegae Gangnam also boasts an extensive array of luxury brand stores, with renowned global names such as Hermes, Louis Vuitton, Chanel, and more operating multiple stores across various genres, including fashion, accessories, cosmetics, and jewelry.

The Stage on the first floor offers pop-up stores by famous brands, featuring unique concepts and a wide range of products to captivate customers.

The store is also undergoing a major renovation to expand its food department, increasing its size to three times the current 7,200 square meters. Once the renewal is complete, Shinsegae Gangnam’s food department will be reborn as Korea’s largest food section, with a total sales area of 20,000 square meters.