The retail industry is in full swing to boost fourth-quarter earnings. The fourth quarter is a peak consumption season with major discount events such as Black Friday and the Christmas shopping rush. For department stores, sales during this period account for about 30% of annual sales. In response, the industry has proposed an "immersive shopping festival" to draw customers.
◇ 45,000 rush to book Hyundai Department Store "Christmas village"
According to the relevant industry on the 27th, Hyundai Department Store will present "Harry's Christmas Workshop" at The Hyundai Seoul in Yeouido for two months starting on the 1st of next month. The first round of advance reservations (for the 15th) began on the 23rd, and with 45,000 simultaneous users logging on, it sold out in 30 minutes.
Hyundai Department Store's Christmas display is seen as a spectacle for shoppers looking to take proof shots. Last year's event at The Hyundai Seoul drew an average of 6,000 visitors on weekdays and more than 10,000 on weekends. Reviews said the space, reminiscent of a European fairy-tale circus village, was well received.
Shinsegae Department Store will unveil its Christmas display at Shinsegae Square (media facade) at the main store in Sogong-dong, Jung-gu, Seoul, starting on the 1st of next month. Since 2021, the department store has drawn attention by removing ads from the main store's exterior at year's end and showing Christmas videos. According to Shinsegae, visitors to Shinsegae Square in November–December last year neared 1 million.
The Lotte Department Store main branch will screen a Christmas-themed media show on the exterior of Young Plaza, which is undergoing a renewal (renovation). In addition, from the 1st of next month to Dec. 14, it will host an exhibition by luxury jeweler Tiffany at the Jamsil World Tower Arena Plaza. The exhibition spotlights founder Charles Lewis Tiffany, who started with a stationery store in 1837 and grew it into a global jewelry brand, and displays more than 60 pieces and jewels preserved by Tiffany.
◇ Year's biggest shopping festivals kick off, including "Kosefe"
For 12 days starting on the 29th, the government and the retail industry will jointly hold the large-scale consumer festival "Korea Grand Festival." Ten ministries will step in to boost domestic demand, including Korea Sale Festa (Ministry of Trade and Industry (MOTI)), Companion Festival (Ministry of SMEs and Startups (MSS)), and a domestic travel campaign (Ministry of Culture, Sports and Tourism (MCST)).
During this period, Shinsegae Group has prepared the "SSG Day" shopping event. From the 30th of this month to the 9th of next month for 11 days, 18 affiliates including Shinsegae Department Store, Emart, and Starfield will participate. Last year's SSG Day surpassed 2 trillion won in sales over 10 days. Shinsegae Group has also prepared about 2 trillion won worth of inventory this year and produced a six-minute promotional video with Dolphiners Film, which made the Gyeongju APEC promotional video.
Lotte Shopping will hold the grocery shopping festival "Thank You Festival" for two weeks starting on the 30th. It is an integrated online-offline event joined by Lotte Mart, Lotte Super, warehouse discount store Max, and the online mall Lotte Mart ZETTA, offering the deepest discounts of the year.
E-commerce platform 11Street will also hold the "Grand Eleven Day" event starting on the 1st of next month. It will run ultra-low-price promotions such as "10-minute rush," "60-minute rush," and "time deal."
The reason the retail industry is focusing on fourth-quarter marketing is that the retail market outlook is pessimistic. On the 8th, the Korea Chamber of Commerce and Industry surveyed 500 retail companies and found that the Retail Business Survey Index (RBSI) for the fourth quarter was 87, down from 102 in the third quarter. While online shopping (87), supermarkets (83), convenience stores (83), and hypermarkets (81) all fell below the baseline, only department stores (103) exceeded the baseline (100). The RBSI quantifies retail corporations' assessments and outlook to represent business sentiment.
KORCHAM said, "Due to complex factors such as an economic slowdown, continued weakness in domestic demand, and intensifying competition among formats, the fourth-quarter outlook failed to maintain its upward trend."
A retail industry official said, "In the fourth quarter of last year, year-end demand did not materialize due to factors such as the declaration of martial law," adding, "This year is not optimistic either, but we are working to maximize sales by strengthening customer experience benefits and content."