Korean department stores turn to pop-up stores to lure Gen Zalpha

Pop-up store for the K-pop group Seventeen [Courtesy of Shinsegae Department Store]

South Korea’s three major department stores, grappling with weak growth after the pandemic, are turning to unique pop-up stores featuring distinctive characters and idols to attract young consumers.

Lotte Department Store announced Monday that it will launch a pop-up event to celebrate the 150th anniversary of Levi’s iconic product, the ‘501’ jeans.

The retailer will open the Monamhee keyring pop-up store at Avenuel in Jamsil, southern Seoul, from October 17 to 22, which will showcase Monamhee dolls adorned in upcycled Levi’s denim.

Lotte Department Store will also open a pop-up store dedicated to popular girl group New Jeans, the global ambassador for Levi’s, from October 23 and November 2.

The store will exhibit products worn by New Jeans during their 2023 Fall-Winter (FW) photoshoot. It will recreate the studio used for the photoshoot, offering a photogenic zone for visitors.

The move comes as part of efforts to cater to the growing demand for unique stores by the Zalpha generation, referring to the combination of Generation Z, born in the mid-1990s to early 2000s, and Generation Alpha, born after 2010.

In January, Lotte World Mall in Jamsil hosted the T1 pop-up event on the first basement floor.

T1 is a famous professional gaming team associated with the globally renowned game, League of Legends (LoL). Even before the store’s official opening, it attracted over 500 fans from the 10-20 age group.

In July, the 5th and 6th floors of the location hosted a collaboration event with the popular RPG game Lost Ark, drawing more than 1,000 customers who formed lines even before the store’s opening.

Lotte Department Store in Jamsil has established itself as a playground for the Zalpha generation, and sales to the 10-20 age group from January to September this year increased by over 20 percent compared to the previous year.

The Hyundai Seoul, another major department store located in Yeouido, is also joining the trend.

Since its opening, The Hyundai Seoul has organized more than 320 pop-up stores, running every two days for two years. Starting with the Slam Dunk pop-up store in January, it has continued to feature various pop-up stores this year, including Korean trot singer Yeong Tak, YouTuber DaNaKa, Lego BTS Dynamite, and popular YouTube channel character Bbangbbang.

The Slam Dunk pop-up store, in particular, drew 400-500 eager fans on its opening day.

According to The Hyundai Seoul, 75 percent of the customers purchasing products from pop-up stores belong to the MZ generation, and it has generated the influx of more than 2 million additional customers annually.

While pop-up stores were once temporary spaces in department stores to sell event products, they have proven their ability to attract the Zalpha generation, leading to the placement of pop-ups in key locations with high foot traffic, according to The Hyundai Seoul.

Shinsegae Department Store joined hands with Hybe and opened a pop-up store for the K-pop group Seventeen in September.

It was Shinsegae’s first venture into hosting a K-pop artist pop-up store. During the 10-day pop-up store period, 10,000 customers purchased products, resulting in about 1.5 billion won ($1.1 million) in sales.

Shinsegae reported that 75 percent of the total purchasing customers at the Seventeen pop-up were first-time visitors to the department store.