[Edaily Reporter KYUNG GYEYOUNG ] Cosmetics “road shops,” which once packed major commercial districts including Seoul’s Myeongdong, are closing their doors. Major brands such as Innisfree, TONYMOLY Co., Ltd., and Skinfood are aiming for a second heyday by entering multi-brand stores—such as Olive Young, Daiso, Naver, and Musinsa—that carry a variety of brands, rather than reducing the number of their standalone stores.

According to the Fair Trade Commission’s Franchise Business Transaction Disclosure Report released on the 1st, TONYMOLY Co., Ltd. had 201 stores nationwide as of the end of last year, a decrease of 70 stores (25.8%) compared to the previous year. The rate of decline (28 stores, or 9.4%) was also steeper than in 2024. Following Ulsan, Sejong, and Jeju, only one franchise location—excluding company-owned stores—remains in Daejeon.

Skinfood, which operates exclusively through franchises without any company-owned stores, had seven stores as of the end of last year, a decrease of three over the past year. The company currently has no stores at all in the Seoul metropolitan area, including Seoul, Incheon, and Gyeonggi Province. While Too Cool For School maintained a total of two franchise stores—one each in Busan and Jeju—its number of company-owned stores gradually decreased from 11 in 2023 to 8 in 2024 and 7 in 2025, bringing the total number of stores below 10.

AmoreG(002790) Its subsidiaries, Innisfree and Etude, are also seeing a decline in standalone stores, with no exceptions. The number of Innisfree franchise stores has plummeted from 324 in 2022 to 234 in 2023, 190 in 2024, and currently stands at 111. The number of Etude House franchise stores has also dropped from 66 at the end of 2022 to 15 currently, falling to one-quarter of its original level over the past four years.

The reason it has become difficult to find the roadside stores—which used to operate two or three locations in major commercial districts like Myeongdong and Hongdae—lies in changing consumer patterns. Rather than using a complete lineup of products—from toner to lotion and cream—from a single brand, there is a growing trend of comparing multiple brands based on skin condition or concerns and selecting products that best suit individual needs.

An industry insider noted, “More consumers are purchasing cosmetics not only from Olive Young but also through various channels such as Musinsa, Daiso, and Kurly,” adding, “This is why multi-brand shops, where consumers can compare brands, are gaining popularity.”

High-street brands are seeking to survive by expanding their store presence in key commercial districts with high foot traffic and many foreign tourists, while simultaneously increasing their presence in “trending” channels such as Olive Young and Daiso. For example, ABLE C&C(078520)discontinued its A’pieu franchise business in 2023 and began selling through its own online store as well as platforms such as Naver, Daiso, Olive Young, and Musinsa. Similarly, Missha has been expanding its overseas and digital channels since last year while reorganizing its company-owned stores and duty-free channels.

The success of these multi-channel strategies is reflected in their financial results. Last year, TONYMOLY Co., Ltd. posted sales of 141.4 billion won and operating profit of 13.7 billion won, up 14.2% and 34.1% year-over-year, respectively, while Too Cool For School saw sales of 93.2 billion won and operating profit of 2.9 billion won, representing increases of 22.4% and 343.6% over the same period. Skinfood’s operating profit fell 5.7% year-over-year to 9.9 billion won, but the company continued its revenue growth with sales rising 3.6% to 80.9 billion won.

These brands are also showing remarkable growth in multi-brand stores. According to Macromill Embrain Co., Ltd.’s purchase deep data, the estimated sales of seven companies—Etude, Vanilla Co., Skinfood, Innisfree, Too Cool For School, Holika Holika, and TONYMOLY Co., Ltd.—at Olive Young from July of last year to June of this year totaled 56.8 billion won, a 14.6% increase compared to the same period last year. Macromill Embrain Co., Ltd. analyzed, “Although their presence has weakened as the roadshop market has shrunk, the brands’ inherent competitiveness has not disappeared.”