Lotte Department Store announced on the 26th that its Jamsil branch has achieved an annual revenue of 3 trillion won as of the 25th. This marks the first time in two years since surpassing 2 trillion won in annual revenue in 2022.
According to Lotte Shopping, the growth of the Jamsil branch is attributed to its focus on 'super retail,' which organically combines department stores, luxury boutiques, and shopping malls to provide experiences and content that exceed expectations from traditional department stores. A Lotte Shopping representative noted, 'Despite the difficult environment, including sluggish domestic demand and deteriorating consumer sentiment, the Jamsil branch is experiencing high-speed growth in the double digits this year,' adding, 'The average annual growth rate in the past three years has exceeded 20%, and last year’s annual revenue, which was around 2.7 trillion won, surpassed this figure by Nov. 30.'
Especially, the introduction of large-scale events like the Christmas market has been explained by Lotte Shopping as providing an innovative experience beyond mere shopping. Being part of 'Lotte Town Jamsil,' which includes Lotte World Tower and Seokchon Lake, was also cited as a differentiating competitive strength. The Jamsil branch features a hotel, a high-rise observatory, an aquarium, a cinema, and the Lotte World theme park. From January to November this year, the number of visitors to the Jamsil branch reached 58 million, a 10% increase compared to the same period last year.
Starting next year, Lotte Department Store will undertake a complete renovation of the main building at the Jamsil branch. This large-scale project is the first of its kind in 37 years since the branch opened in 1988. The goal is to achieve an annual revenue of 4 trillion won by 2027, becoming the first department store in Korea to reach this figure. The first phase of the renovation will focus on the underground food court, which will be themed around 'premium' in collaboration with overseas design firms to create an innovative food hall. Following this, the main building is expected to be reborn as a premium department store representing the Gangnam area through step-by-step renovations starting from the lower floors.
Since 2021, Lotte Department Store has been operating the 165,000 square meter (50,000 pyeong) World Mall, managed by Lotte Asset Development, utilizing the department store's merchandise planning (MD) capabilities to enhance content appealing to younger generations. In the past two years, over 100 stores have opened or been renovated in the World Mall, and more than 600 pop-up stores have been introduced.
The main building and Avenue El prominently display customized MD for top-tier customers. This year, the main building has increased its offerings of premium lifestyle brands. According to Lotte Shopping, from January to November this year, the sales of lifestyle products at the Jamsil branch have recorded over 40% growth. Additionally, the main building and Avenue El are undergoing an expansion renovation, including the establishment of five new lounges for VIP customers, featuring the largest VIP customer lounge in Korea, spanning 2,050 square meters (620 pyeong).
In addition to the Jamsil branch, Lotte Department Store is also renovating its flagship store in Sogong-dong and the Incheon branch. The flagship store's renovation, including the luxury goods section and the creation of a K-fashion section, is scheduled for next year. The flagship store has been undergoing a phased renovation since 2021, with over 10% of its area under construction throughout the year, yet it surpassed 2 trillion won in annual revenue again on the 23rd, following last year's performance. The Incheon branch will add a kids' section and a fashion section next year.
Jeong Jun-ho, CEO of Lotte Department Store, stated, 'The Jamsil branch will not only surpass 4 trillion won, making it the first department store in Korea to do so, but it will also rise to become the world's largest department store,' adding, 'We will pave the way for a new future in retail through groundbreaking innovations.'