Shinsegae, Lotte go all-out to attract young consumers in Suwon

Lotte Department Store Suwon [Courtesy of Lotte]

South Korean retail giants Lotte Department Store and Shinsegae Group are set to compete head-to-head in Suwon, a city in Gyeonggi Province that boasts an annual footfall of 100 million people in South Korea’s Gyeonggi Province.

Shinsegae Property Inc. will open Starfield Suwon in Jangan District on January 26. Following Starfield locations in Hanam, Goyang, and Anseong, all in Gyeonggi Province, and COEX Mall in southern Seoul, Starfield Suwon marks the fifth addition to the brand.

Starfield Suwon aims to become a hub for the next generation of experiential consumption. It features a curated gourmet street showcasing regional delicacies from areas like Cheongdam and Itaewon, along with a specialized food and beverage (F&B) area called Bites Place.

Starfield Suwon also introduces the renowned Starfield Library, known for its cultural experiential space, from the COEX Mall branch. Additionally, Concord Fitness Club, offering fitness facilities such as a gym, indoor golf practice range, GX rooms, swimming pool, and sauna, is actively recruiting members.

Lotte Department Store is also undergoing a revamp of its Suwon branch. As part of its core initiatives for this year, Lotte Department Store prioritizes the renovation of key branches, including the main branch and Incheon branch, with Suwon being one of the targets.

The renovation is expected to be completed in the first half of this year and will be carried out in stages, with the stores in the department remaining open for business during construction.

The focus of Lotte Department Store Suwon’s renewal is on elevation.

“With the influx of customers with purchasing power due to the establishment of major research complexes in Suwon, we are focusing on strengthening premium product merchandising as part of the renovation,” said a spokesperson from Lotte Department Store.

Following the success of the high-end focus at the Jamsil branch last year, which saw a growth rate of above 6 percent, Suwon is also concentrating on securing a premium product lineup. Facilities for the categories undergoing construction until the grand opening are predominantly for luxury products.

The competition between Lotte Department Store and Shinsegae Group is not only a showdown between the two but also includes another powerhouse in the region, AK Plaza.

According to sources, AK Plaza Suwon recorded sales of 512.8 billion won ($383 million) last year, up 2 percent from a year ago and significantly higher than Lotte Department Store Suwon’s 388.2 billion won during the same period.

AK Plaza Suwon’s accessibility is considered its major strength, with Aekyung Group strategically placing the shopping mall within Suwon Station to attract foot traffic.

However, the slightly intricate internal layout of the shopping mall is being evaluated, and the appeal of convenience from Lotte Department Store and Starfield to consumers remains a key consideration.

The entry of retail giants into large-scale commercial facilities competition in Suwon is driven by the potential customer base in the region.

Suwon’s population increased by 0.69 percent to 1.2 million last year, making it the city with the highest population in Gyeonggi Province.

The retail industry anticipates that Suwon will continue to grow and emerge as a core hub for industry and distribution in the southern part of Gyeonggi Province, given the concentration of major companies such as Samsung Electronics Co. and Doosan Robotics, attracting a continuous influx of young professionals.