Competition among three department store outlets in Busan is showing signs of ignition. Following the existing Lotte Premium Outlet and Shinsegae Simon Busan Premium Outlet in the area, Hyundai Department Store plans to start construction on this year's premium outlet, aiming for a 2027 opening.
On the 18th, industry sources reported that the district of Gangseo in Busan processed Hyundai Department Store's application for a building permit for the "Hyundai Premium Outlet (tentative name)" being developed within Eco Delta City.
Hyundai Premium Outlet Busan is a large shopping and cultural facility being developed on a site area of 86,015 square meters within the Eco Delta City retail sales facility, featuring 1 basement level and 4 floors above ground, with a total floor area of 198,782 square meters. Hyundai Department Store purchased this site from the water resources corporation for 321.3 billion won in 2022 and plans to invest 700 billion won to create the premium outlet. Construction is set to begin this year with a target opening in 2027.
A representative from Hyundai Department Store noted, "We are still in the planning phase for the content," adding, "We plan to unveil a future-oriented retail platform that offers a differentiated shopping experience based on the premium outlet."
Currently, Lotte and Shinsegae operate outlets in the eastern district of Gijang in Busan. The Shinsegae Simon Busan Premium Outlet opened in 2013, followed by Lotte Shopping's Dongbusan Premium Outlet in 2014.
Lotte has seized the opportunity. Last year, Lotte Premium Outlet Dongbusan recorded sales of approximately 750.2 billion won, a 12% increase from the previous year. This result ranked second among 35 outlet stores in the country, following Shinsegae Yeoju Premium Outlet at 795 billion won.
Shinsegae Busan Premium Outlet's sales increased to 327 billion won, a rise of about 13% compared to the previous year, ranking 12th in overall sales. The outlet industry is also witnessing a growing polarization trend, similar to department stores, where only top stores are experiencing growth. However, both locations showed double-digit sales growth last year due to renovations.
Lotte Premium Outlet Dongbusan expanded last year with the addition of a 1,400-pyeong "The Square" plaza, creating a garden-style natural relaxation culture space, and executing a renovation that reinforced over 200 brands. Shinsegae Busan Premium Outlet expanded its sales area from 33,100 square meters (10,000 pyeong) to 51,480 square meters (15,600 pyeong) and increased the number of brands from 170 to 270, a 60% rise.
Although it is not in the Busan area, the adjacent Lotte Premium Outlet Gimhae is also thriving. The newly opening Hyundai Premium Outlet is located more than 50 kilometers away from the existing Lotte and Shinsegae outlets in Dongbusan, while Lotte Premium Outlet Gimhae can be reached in about 20 minutes by car, suggesting it will be in a competitive position. The Gimhae outlet recorded sales of 442.7 billion won last year, ranking 6th among all stores.
Industry analysts believe that Hyundai Premium Outlet's location more than an hour's drive away from the Dongbusan outlet area, which is considered a key outlet market in Busan, and its potential to attract the floating population from Gyeongnam gives it competitive advantages.
In particular, the "Connect Hyundai," which Hyundai Department Store unveiled after renovating its lowest-performing Busan store last September, has received positive feedback. This is seen as an opportunity for Hyundai Department Store, which has had a weak presence in the Busan area, to establish a new foothold.
"Connect Hyundai" is an urban complex shopping mall tailored by Hyundai Department Store for regional stores, and after opening, the influx of customers in their 20s and 30s increased, resulting in sales exceeding the target by more than three times. Hyundai Department Store plans to introduce Connect Hyundai in Cheongju in May.