Shinsegae Department Store announced on the 5th that the annual transaction amount for its off-price store 'Shinsegae Factory Store' exceeded 100 billion won last year.
The Factory Store is an offline shop where Shinsegae Department Store buys brand excess inventory and sets the prices for sale. It sells products from the Shinsegae department store's edit shop 'Boondeashop,' as well as famous domestic and international brand excess inventory at discounts of 30% to 80%.
Since opening its first store in August 2017 at Starfield Goyang, the Factory Store has expanded to 18 locations last year, including all Shinsegae Department Stores, Shinsegae Simon Premium Outlets, Starfield, and shopping malls.
The annual transaction amount increased by more than an average of 38% annually, from 7.5 billion won in its first year.
Shinsegae Department Store is considering plans to open about four additional Factory Store locations in the country. The annual transaction target is set at 120 billion won.
The Factory Store is also a representative win-win business for Shinsegae Department Store. It purchases inventory from small fashion companies and brands whose contracts with department stores have ended, alleviating the burden on companies and reducing clothing waste.
In 2023, it donated clothing worth 300 million won based on cost to the Beautiful Store, a non-profit foundation, and last year it donated clothing worth 800 million won in four instances to the Beautiful Store and Goodwill Store, according to Shinsegae Department Store.