The London Bagel Museum at Lotte World Mall in Jamsil. The opening of the London Bagel Museum and Blue Bottle Coffee last August and September has significantly prolonged customer visits. (Image provided by Lotte Department Store)
SEOUL, Jan. 8 (Korea Bizwire) –In a bold move to overcome fierce economic headwinds, department stores and large supermarkets in South Korea are focusing on improving their offline presence, increasing experiential content in their stores to prolong customer visits and boost sales.
According to industry insiders, the strategy to encourage longer stays aims to transform customer visits from quick shopping trips to longer, more engaging experiences that promote spending.
Chung Yong-jin, the vice chairman of Shinsegae Group, remarked during a visit to the newly renovated E-Mart Yeonsu branch last May, “We are not competing to sell products, but to buy customers’ time.”
Department stores and supermarkets are competitively investing in enhancing ‘experiential content’, including store renovations, specialized store layouts, attracting popular eateries, art exhibitions, and pop-up stores to capture more customer time.
Lotte Department Store is focusing on attracting the MZ generation (those born from the early 1980s to the early 2000s), a key consumer demographic, with trendy food and beverage outlets.
A prime example is the Knotted donut flagship store ‘Knotted World’, which opened in March last year at Lotte World Mall Jamsil, becoming one of the mall’s leading stores by drawing over 3,000 customers daily.
‘Knotted World’ opened in March last year at Lotte World Mall Jamsil (Image provided by Lotte Department Store)
The subsequent opening of the London Bagel Museum and Blue Bottle Coffee last August and September has significantly prolonged customer visits.
Shinsegae, having successfully attracted MZ customers last year with Seventeen and Hello Kitty pop-ups, plans to introduce a variety of new content this year, breaking boundaries between industries.
Hello Kitty pop-up at Shinsegae Gangnam store (Image provided by Shinsegae Department Store)
The company’s ‘art marketing’, among the most active in the industry, is a strength. In 2020, Shinsegae renovated the third floor of its Gangnam branch, home to luxury brands, into an ‘Art Space’ dedicated to art exhibitions, displaying and selling works by renowned domestic and international artists. This strategy not only democratizes art but also encourages customers to stay longer and positively impacts sales.
The newly opened Daejeon Shinsegae Art & Science store in 2021 is gaining attention as a department store that fully integrates art and shopping.
Hyundai Department Store is also promoting ‘Art-tainment’, combining art and entertainment, with a strategy that includes hosting high-quality exhibitions, typically seen in professional galleries, to attract art enthusiasts.
The Christmas Market at The Hyundai Seoul (Image provided by Hyundai Department Store)
A notable example is the ‘Pompeii Relics Exhibition’ at The Hyundai Seoul, which will display over 120 artifacts from the Naples National Archaeological Museum in Italy. Hyundai is also planning a major art exhibition in partnership with Robilant + Voena, the world’s largest gallery, later this year.
Supermarkets are emphasizing ‘experiential spaces’, differentiating themselves from e-commerce. Emart, for example, is reducing non-food sections in favor of expanding food and tenant spaces.
After renovating 51 stores since May 2020, including the Wolgye, Yeonsu, and KINTEX branches, Emart has transformed these establishments into ‘complex malls’. The newly opened The Town Mall KINTEX branch quadrupled its number of food, entertainment, and lifestyle lease shops to 98.
‘Gateway to Books’ on the first floor, with over 20,000 comic books and 5,000 other books, alongside food and beverage offerings, has become a popular family destination. The ‘Atrium & Library Rest Area’ and the ‘Playtime S’ kids’ cafe are also popular among families with young children.
E-Mart Atrium & Library Relaxation Area (Image provided by E-Mart)
Emart reported that customer visits exceeding three hours doubled after the renovation, with a 15% increase in visitors.
Lotte Mart is captivating customers’ time with its ‘Grand Grocery’, filling 90% of the store with food items and creating experiential spaces. The Zettaplex Seoul Station branch, reopened last September, introduced ‘Character Street’ with seven character shops and ‘Capsule Street’ with over 500 kinds of authentic Bandai products, attracting young customers and the MZ generation.
Bomul, a Korean cultural product store and the first of its kind in a large supermarket, has been popular among foreign tourists. Lotte Mart reported a 30% increase in visitors to the Zettaplex Seoul Station branch since its reopening.
Zettaplex Jamsil, which opened in December 2021, was designed as a multi-purpose cultural and sports space, featuring a large wine tasting area, a roller skating rink, and a futsal field.
Homeplus Incheon Nonhyeon’s Kid’s Pool. Homeplus is transforming into a more inviting destination by expanding its food markets and incorporating entertainment and experiential elements. (Image provided by Homeplus)
Homeplus is transforming into a more inviting destination by expanding its food markets and incorporating entertainment and experiential elements.
Since February 2022, Homeplus has renovated 24 stores, introducing attractions like a Ramen Museum, Whiskey Library, Mixology Zone, and specialized healthy food zones.
Large ‘Monster Park’ kids’ cafes at the company’s Gayang and Masan branches, a children’s swimming pool at the Incheon Nonhyeon branch, a roller skating rink at Yeongdeungpo, and futsal parks at the Dongdaemun and Ilsan branches have increased family visit time.
Homeplus is also boosting its automotive services, with car repair shops and car washes, providing convenience for customers doing their shopping.
Ashley Song (ashley@koreabizwire.com)
