Hyundai Department Store unveiled South Korea’s first Godiva Bakery at its The Hyundai Seoul location on August 6. (Image courtesy of Hyundai Department Store)
SEOUL, Aug. 13 (Korea Bizwire) – In a strategic shift to combat the migration of shoppers to online platforms, South Korean department stores are engaged in a fierce competition to introduce exclusive international cafes and dessert shops to the local market.
Social media platforms are abuzz with posts from eager patrons flocking to newly opened establishments such as Bacha Coffee, dubbed the “Hermès of coffee,” and Godiva Bakery, an offshoot of the renowned Belgian chocolatier.
These venues represent the first South Korean outposts for their respective brands, with Lotte Department Store and Hyundai Department Store each claiming bragging rights for their exclusive offerings.
According to industry insiders, this trend reflects a pivot by department stores to emphasize “experiential” food and beverage options.
Until recently, these retail giants focused on bringing in popular domestic eateries like London Bagel Museum and Teddy Bear House. Now, they’ve expanded their scope to include international culinary hotspots.
Lotte Department Store made the first move by opening Bacha Coffee’s inaugural Korean location on August 1. Notably, a standalone store in Seoul’s upscale Cheongdam district was chosen rather than an in-store location.
Lotte Department Store introduced Bacha Coffee, a Moroccan luxury coffee brand, to South Korea on August 1. (Image courtesy of Lotte Department Store)
The shop, decked out in Bacha’s signature orange and gold, has become a hot topic among premium coffee enthusiasts. It’s only the 24th Bacha Coffee location worldwide, underscoring its exclusivity.
“Bringing in famous international eateries allows us to attract new customers and potentially increase sales across other departments,” a Lotte Department Store representative stated. The company plans to open additional Bacha Coffee outlets at its main store this year and at its Jamsil branch in early 2024.
Lotte is also set to introduce Bateel, a luxury Saudi Arabian dessert brand, to Lotte World Mall in October. This will mark Bateel’s first presence not just in Korea, but in all of Asia. The brand is renowned for its gourmet dates filled with nuts, dried fruits, or coated in chocolate.
Hyundai Department Store countered by unveiling South Korea’s first Godiva Bakery at its The Hyundai Seoul location on August 6. This store is only the second of its kind globally after Tokyo.
The launch has seen overwhelming demand, with waiting lines exceeding 30 groups and daily visitor counts averaging 500. Some customers even traveled from as far as Busan for a taste on opening day.
In May, Hyundai also introduced a pop-up store for Oakberry, a Brazilian açaí bowl brand famous for its fruit smoothies. The opening saw remarkable scenes with customers waiting up to two hours for service.
Shinsegae Department Store joined the competition by introducing Intelligentsia, a high-end American coffee brand known for its unique “AeroPress” extraction method, to its main branch on July 17. (Image courtesy of Shinsegae Department Store)
Shinsegae Department Store joined the competition by introducing Intelligentsia, a high-end American coffee brand known for its unique “AeroPress” extraction method, to its main branch on July 17.
This marks Intelligentsia’s second location in Korea. Earlier this year, Shinsegae also opened a dessert hall featuring first-in-Korea outlets of international confectionery brands like Pierre Marcolini from Belgium, Mille & Un from France, and Gariguette from Japan.
A Shinsegae representative noted, “Department stores are now serving as gateways for experiencing coffee and desserts previously only available overseas. The buzz on social media has been particularly effective in attracting younger customers.”
Ashley Song (ashley@koreabizwire.com)
The idea of bringing in exclusive international cafes and bakeries is a great way to draw people in and give them a reason to visit the store in person. I especially like the fact that they are promoting these brands on social media to reach a younger demographic. This is a smart way to stay ahead of the curve and keep up with the changing retail landscape.