[Edaily Reporter SHIN MIN JOON ] The domestic department store industry is actively working to attract Gen Z customers (born in the mid-to-late 1990s through the early 2000s). They are attracting young people through pop-up stores featuring popular characters, unique desserts, and K-pop performances. The strategy is to transform department stores into spaces where shopping, culture, and leisure can be enjoyed together, thereby expanding their reach to the key consumer base of the future.
According to the department store industry on the 27th, from January to September of this year, customers in their 20s and 30s accounted for 31% of Shinsegae Co.,Ltd.’s new customers, a 2 percentage point increase compared to the same period last year. During the same period, HYUNDAIDEPARTMENTSTORECO.,LTD saw this figure rise by 1 percentage point to 47%. At Lotte Department Store, the number of new customers in their 20s and 30s increased by 20%.
To expand its young customer base, Lotte Department Store is pursuing a “town-building” strategy centered on its main store and Jamsil branch, linking them with surrounding commercial districts and shopping and cultural facilities. The Jamsil branch hosted 450 pop-up events in the first half of this year alone, following 700 events last year. In addition to indoor stores, the department store is showcasing seasonal events by utilizing surrounding spaces such as outdoor lawn plazas and Seokchon Lake. Following the winter Christmas market, it launched a new “Pokémon Summer Market” this summer. “Style Run,” a running event now in its eighth year, combined fashion and fitness through a collaboration with Zara.
The flagship store targets foreign Gen Z customers visiting Myeongdong. At the end of the year, it will unveil “Lotte Town Light,” a massive media facade the size of four basketball courts, on the exterior of Young Plaza. The Myeongdong Festival, launched in 2023 to revitalize the commercial district, featured K-Fashion, K-Beauty, and K-Game content this year. Last year, the festival surpassed 1 million cumulative visitors.
Shinsegae Co.,Ltd is strengthening its dessert and character-themed offerings, centered around its Gangnam branch. Until November 3, it is hosting the “Thrilling Character Festa” at the Open Stage on the first floor of Central City, featuring the toy and figurine brand Blooky and the character goods specialty shop Hobby Soul.
On the first basement level of the Gangnam branch, a pop-up by Daeheung Rice Cake Shop from Jongam-dong will run through the 30th of this month, featuring items such as matcha chocolate rice cakes. Fukuyoshi Café from Hokkaido, Japan, will operate until November 9, and from November 10 to 25, the store will introduce Saori, a Kyoto-based dessert shop specializing in nighttime treats.
Sweet Park, the centerpiece of the department store’s dessert strategy, recorded 1.4 million cumulative visitors just one month after its February 2024 opening. Since then, it has introduced new brands such as I’m Donut and Pom Pom Purin Café, establishing itself as a space where visitors discover new brands and share photos and reviews.
Shinsegae Co.,Ltd is also expanding its pop-up events featuring intellectual property (IP) from games and animation. In February of this year, Shinsegae Co.,Ltd hosted the first standalone pop-up in Korea for the mobile rhythm game “Project Sekai” and is attracting fans with pop-up shops like “Jump Shop” and “Pingu.” Major stores have attracted popular fashion brands such as Emis, Pottery, and Recto, while the flagship Shinsegae Square location features K-pop videos.
HYUNDAIDEPARTMENTSTORECO.,LTD is focusing on interest-driven content such as reading, stationery, global fashion, and subculture. Starting with the Cheonho branch last February, it held pop-ups for the writing and reading supplies brand “Gleipda” at 11 locations, including The Hyundai Seoul. In line with the “text-hip” trend—which promotes reading and writing as sophisticated cultural pursuits—the store sold glass pens, ink, and bookmarks, and set up experiential spaces.
The Hyundai Seoul has introduced pop-ups featuring K-pop, virtual idols, and professional soccer, while also attracting the first domestic department store locations for global fashion brands such as OnLining, Alro, and Arket. The Sinchon branch, located in a university district, is being developed as a store specializing in entertainment. The entire 12th floor has been transformed into “Space Illusta,” where virtual idol concerts and fan meetings are held. Starting this month, the department store has been hosting the Sinchon K-pop Show every Friday at Star Plaza in front of U-Plex. After seeing approximately 1,000 people flock to each performance—which had been held irregularly since last July—the event was expanded into a regular series.
A department store industry official stated, “Gen Z is a consumer group that drives trends in products and brands, and they are also future customers whose purchasing power will grow,” adding, “We are implementing various strategies to attract them so they will visit frequently.”
