Lotte Department Store’s Main Branch in Sogong-dong. (Image courtesy of Lotte Department Store)
SEOUL, July 22 (Korea Bizwire) — As record-breaking heat and monsoon rains sweep across South Korea this month, a growing number of consumers are opting to spend their leisure time indoors — fueling a retail phenomenon known as “mallcations” and delivering a significant sales boost to department stores and outlet malls.
According to major retailers, foot traffic from July 1 to 17 rose sharply compared to the same period last year. Lotte Department Store reported a 10% increase in visitors, while Shinsegae and Hyundai Department Store recorded respective gains of 14% and 13%, translating to sales growth of 11.1% and 10.7%. Hyundai Premium Outlet, equipped with underground parking, saw its sales surge 21.2%.
The shift is largely attributed to the unpredictable weather, which has made air-conditioned indoor venues more appealing than outdoor spaces. Families in particular are driving a rise in food and beverage (F&B) sales: Lotte reported a 10% jump, while Shinsegae and Hyundai logged 15.8% and 12.4% increases in F&B revenue.
With the summer vacation season approaching, seasonal product categories also experienced strong performance. Sales of swimwear at Lotte climbed 15%, aided by a government tax incentive for cultural activities. Appliance sales rose 10% under an energy efficiency rebate program.
Hu‘i Hu‘i Maui Summer Theme at The Hyundai Seoul. (Image courtesy of Hyundai Department Store)
Cooling bedding was another top seller, with Shinsegae reporting a 33.7% spike in its bedding category. Hyundai saw 23.9% growth in sportswear and 18.8% in home living products.
Retailers are also rolling out immersive, summer-themed experiences to capitalize on the traffic. Lotte will launch a “Summer Gourmet Week” across all locations on July 25, offering sweepstakes for F&B customers. The chain will also host a “Summer Wine Festa”, discounted spirits promotions, and pop-up jewelry boutiques catering to seasonal accessory shoppers.
Shinsegae has introduced surfing gear pop-ups and is showcasing art exhibitions such as “Summer Hashtag #Summersnow” at its Daegu gallery, featuring over 100 artworks that capture the essence of summer.
Hyundai Department Store is transforming its spaces with a Hawaiian resort theme under the “Hu’i Hu’i Maui” campaign running through August 21. At The Hyundai Seoul, a fifth-floor indoor garden has been transformed into a tropical market, complete with pop-up stores selling musubi, straw hats, and hula outfits from 65 participating brands.
With Korea’s climate becoming increasingly unpredictable, retailers are embracing climate-proof leisure strategies — redefining malls not just as shopping centers, but as cool and curated summer destinations.
Ashley Song (ashley@koreabizwire.com)
