Shinsegae to revamp CHICOR, challenge CJ Olive Young

The newly renovated CHICOR AK&Hongdae store. (Shinsegae Department Store)

Shinsegae Department Store is committing to a major revamp of its multi-brand beauty chain, CHICOR, to boost its position against competitor CJ Olive Young. CHICOR will renovate all 22 stores across South Korea starting in the first quarter of 2025 and aims to expand its exclusive K-beauty lineup.

CHICOR was launched by Shinsegae in 2017 with an ambition to become “Korea’s Sephora,” offering a curated selection of global beauty brands. However, the Covid-19 pandemic and increased competition in the offline beauty market led to some store closures. To regain momentum, Shinsegae has restructured, creating a dedicated “CHICOR Division” under the CEO’s direction. Key changes include relocating and expanding the flagship Gangnam Station store and dedicating a larger space for CHICOR at the main Shinsegae store. Some stores have already seen success, a good example being the AK Hongdae location, which reported a 90 percent on-year increase in sales after its reopening in October 2024.

The revamped AK Hongdae store has increased its K-beauty offerings, now accounting for 55 percent of the store’s selection, up from 40 percent previously. This shift highlights CHICOR’s response to the growing demand for Korean beauty products.