[Edaily Reporter Han Jeon-jin ] HYUNDAIDEPARTMENTSTORECO.,LTD(069960)is set to undergo a complete renovation of the B1 level at its Trade Center branch. The renovation will cover the entire food hall, encompassing the Hyundai Food Hall, the Food Hall, the Deli (ready-to-eat foods), and the Grocery (fresh foods). As this involves a complete overhaul of the store’s key customer-drawing area, there is speculation that it could lead to a broader renovation of the entire Trade Center branch in the future. With competition among department stores in the Gangnam area intensifying, the company appears to be accelerating efforts to strengthen the competitiveness of its flagship stores.

According to a comprehensive report by Edaily on the 31st

recently decided to proceed with

of

at its Trade Center branch and has begun preparations with the goal of starting construction next year HYUNDAIDEPARTMENTSTORECO.,LTD is considering a plan to completely reorganize the entire B1 level—including the food court, food hall, and the food market that handles fresh produce. Currently, discussions are focused on the direction of the reorganization and the mix of tenant brands (MD); the specific start date for construction and the list of tenant brands have not yet been finalized. A HYUNDAIDEPARTMENTSTORECO.,LTD official stated, “We are reviewing the plan, but nothing has been finalized yet.”

The B1 level serves as a key gateway to the Trade Center branch. Directly connected to Exit 5 of Samsung Station on Subway Line 2 and linked to Starfield COEX Mall, it is the first stop for most customers. Given the location’s concentration of international conferences, exhibitions, and hotel demand, it also attracts a high proportion of foreign visitors.

Currently, the layout features the food hall “H Kitchen” and Wine Works at either end, with a food market selling meat, seafood, cheese, and fruit in between, and dozens of deli shops filling the space in between. The grocery section is also divided into three areas, causing customer traffic to be dispersed. With over 60 tenant brands alone, the merchandising adjustment process is expected to be substantial.

This reorganization is seen as an extension of the previous restructuring of space following the reduction in duty-free retail floor area. Last April, as part of efforts to improve operational efficiency, Hyundai Duty Free reduced the retail floor area of its Trade Center branch for the second half of the year from the 8th to 10th floors to the 8th and 9th floors. The vacated 10th floor was transferred to the department store, and HYUNDAIDEPARTMENTSTORECO.,LTD is currently reorganizing this space to focus on luxury brands, global gourmet offerings, and relaxation areas. Among the flagship offerings, Eataly—an Italian gourmet brand operated by HYUNDAI GREEN FOOD(453340)—is scheduled to open next month.

The department store industry believes it is highly likely that the

will undergo a renovation similar to that of the Apgujeong Main Store. In 2023, the Apgujeong Main Store renovated its food hall for the first time in 18 years, focusing on increasing dwell time rather than turnover by removing the existing food court and introducing “gastro tables.” For the Trade Center Branch, plans are being discussed to reorganize the fragmented deli sections into distinct zones and strengthen the grocery section’s competitiveness. Given the high proportion of foreign visitors, there is also a possibility of expanding K-food offerings.

The renovations are also driven by intensifying competition among department stores in the Gangnam area. Although the Trade Center branch surpassed 1 trillion won in annual sales in 2021, competition among large stores in the Gangnam area has since become even more fierce. Shinsegae Co.,Ltd.’s Gangnam branch and Lotte Department Store’s Jamsil branch recorded sales of 3.6717 trillion won and 3.3010 trillion won, respectively, last year, establishing a two-horse race in the “3 trillion club.” Analysts note that as consumption continues to concentrate on top-tier stores, the Trade Center branch faces the challenge of boosting its competitiveness through differentiated offerings.

There is also speculation that the renovation of the food hall will serve as the starting point for a phased overhaul of the Trade Center branch as a whole. The Trade Center branch, which opened in 1988 alongside COEX, is celebrating its 38th anniversary this year. Following vertical and horizontal expansions in 2013, the branch underwent a complete renovation of six floors—including floors 3 through 7 and the 10th floor—in 2018 ahead of the opening of a duty-free shop. Given that the strategy for utilizing space has changed following the downsizing of the duty-free shop, it is highly likely that floor-by-floor renovations will proceed sequentially.

A retail industry official stated, “The food court is the first space customers from Samsung Station and COEX Mall encounter, but currently, it functions primarily as a thoroughfare,” adding, “We must capture customers at the entrance to increase both the overall time spent in the store and sales.” The source added, “In an era where the food hall and food and beverage (F&F) sections determine a store’s success or failure, the trend of prioritizing renovations to the food hall will become even more pronounced as competition in the Gangnam area intensifies.”