This undated photo, provided by Shinsegae Department Store, shows its outlet in Gangnam.
SEOUL, July 10 (Korea Bizwire) — South Korea’s major department stores are turning to the food business as part of efforts to defend against deteriorating performance resulting from an economic slump and contraction in consumption.
Shinsegae Department Store has launched a complete renovation of the food court in its Gangnam outlet for the first time since 2009.
The company also plans to expand the floor space of the food court to about 19,830 square meters, surpassing the current largest food court at a domestic department store, which is located at The Hyundai Seoul.
Hyundai Department Store’s Apgujeong main branch has recently undergone a renovation of its food court, marking the first renewal in 18 years.
Typically, department stores rely on food courts with high turnover rates. However, Hyundai has filled its food court with restaurants associated with renowned chefs and dessert brands.
Lotte Department Store is considering the idea of renovating its Young Plaza shopping center near the flagship store in the Myeongdong commercial district, with a focus on food and beverage services.
The department store chain is exploring the feasibility of filling the outlet with a variety of popular restaurants targeting foreign tourists and young consumers.
The primary reason why department stores are placing a greater focus on food courts is that it is regarded as an effective way to attract customers.
According to a survey conducted by Open Survey, which included 4,000 adults aged 20 to 59 and 1,000 consumers, 87.1 percent of the respondents chose dining out as the most popular activity at department stores, apart from shopping.
In the first half of this year, the food-related purchase rates for Shinsegae Department Store and Hyundai Department Store stood at 71.2 percent and 65.2 percent, respectively.
Ashley Song (ashley@koreabizwire.com)
