Lotte Department Store to revamp branches with food hall

Lotte Department Store Nowon branch in Seoul

Lotte Department Store is poised to transform its Nowon branch in Seoul into a premium food hall-centric destination that will attract visitors with high-quality food offerings and subsequently drive sales in fashion, beauty, and luxury goods.

According to industry sources, Lotte Department Store will commence the renovation of the Nowon branch in the second half of 2024. Located in the bustling Nowon district, the branch is a key retail hub in northern Seoul surrounded by schools, large apartment complexes, and public transportation, including subway lines.

The centerpiece of the renovation is the premium food hall. Lotte has previously seen success with similar upgrades, opening high-end food halls at its Incheon branch in December 2023 and the Suwon branch in April 2024. Building on this momentum, Lotte aims to elevate the food and beverage (F&B) offerings at the Nowon branch to attract more customers.

Lotte Department Store is using the food hall at French department store Galeries Lafayette as a model for its own premium food hall. The Nowon branch will undergo a phased renovation that will start at the basement food hall and extend to the first three floors.

“Luxury goods used to be the main differentiator for department stores. Now, it is about elevating luxury, beauty, and food all together,” a retail industry insider said.

The upcoming premium food hall at the Nowon branch is expected to resemble the ‘Food Avenue’ at the Incheon branch. Opened in December 2023, the 6,600 square meter Food Avenue has quickly become a culinary hotspot in Incheon, drawing over 3.4 million visitors in just five months and doubling its sales during that period.

The Suwon branch has also benefited from its food hall renovation., it introduced ‘Dining Avenue,’ a premium food hall focused on culinary curation, on April 25th, 2024, the first of its kind in a mixed-use shopping mall.

Lotte Department Store is planning similar renovations for its key branches, including the Gangnam and Dongtan locations, to introduce high-end food halls.

The trend of upgrading food halls to draw customers is a global phenomenon in the department store industry, with all three major department store chains in Korea enhancing their food hall offerings. Shinsegae Department Store is renewing its Gangnam branch’s food hall for the first time in 15 years since 2009, while Hyundai Department Store introduced ‘Food Park,’ an F&B specialty hall, at its Jungdong branch in April 2024.