Shinsegae Department Store's Gangnam branch said on the 9th that its cumulative sales (transaction amount) for the year topped 3 trillion won on the 7th. From 2023 through this year, Gangnam branch sales have surpassed 3 trillion won for three consecutive years. However, the timing of reaching 3 trillion won this year came two months earlier than in 2023 and three weeks earlier than last year.
According to Shinsegae Department Store, the Gangnam branch posted an 8.1% sales growth rate through early this month despite a slump in domestic consumption in the first half. It was the first among domestic department stores to surpass 3 trillion won in sales. A Shinsegae Department Store official said, "It is the result of boosting our core competitiveness through sustained investment and space innovation."
The Gangnam branch has the largest lineup of luxury goods (product categories) among single stores in Korea. Global brands including Hermès, Louis Vuitton, and Chanel, as well as Gucci, Dior, Bottega Veneta, and Prada, have moved in with more than 100 boutiques subdivided by category, such as men's and women's boutiques, beauty, shoes, jewelry, and kids' lines. This year, luxury sales at the Gangnam branch account for 40% of total sales.
In particular, all of the world's four major luxury jewelry brands—Bulgari, Tiffany, Cartier, and Van Cleef & Arpels—are present, driving growth in luxury jewelry sales. This year, the store held various watch and jewelry events centered on VIP customers, and sales from January through Oct. rose more than 30% from a year earlier.
The Gangnam branch is also cited as the "largest food hall in Korea," specializing in desserts. Since its renovation, food hall sales at the Gangnam branch have increased by more than 20%. On weekends, including foreign tourists, more than 100,000 people visit per day, making it a "global hotspot." Sales to foreign customers also jumped by more than 71%.
VIP (top customers) sales accounted for 52% of Gangnam branch sales, topping half for the first time this year. VIP sales increased by more than 8%, and the number of Red customers—the entry tier among VIPs (purchases of 5 million won or more)—rose by about 10%.
In particular, 1.6 million people in their 20s and 30s visited the Gangnam branch's pop-up stores (temporary shops) this year, and new customers with no prior purchase history at the Gangnam branch accounted for 70% of buyers. In addition, with move-ins scheduled at new apartment complexes near the Gangnam branch, such as Sinbanpo Maple Xi and Banpo Triny-one, sales are expected to continue to grow.
A Shinsegae Department Store official said, "Next year, Shinsegae Gangnam will aim for 4 trillion won in sales and head toward becoming the world's best department store," adding, "We plan to stand shoulder to shoulder with global luxury department stores such as Japan's Isetan Department Store (sales of about 4.3 trillion won last year) and the United Kingdom's Harrods Department Store (sales of about 4.8 trillion won) and embark on full-scale competition."
Currently, among Shinsegae Department Store locations, branches with annual sales of more than 1 trillion won include the main store, the Gangnam branch, Centum City, and Daegu Shinsegae—four in total—which is expected to increase to five this year with Daejeon Shinsegae Art & Science. This would give it the largest number of "1 trillion won sales" stores in the department store industry. Among them, Centum City is expected to reach 2 trillion won in sales at the end of this month, moving the timing up by one month from last year.
Park Ju-hyeong, president and CEO of Shinsegae Department Store, said, "Gangnam branch will not rest on the early achievement of '3 trillion won in sales' and will rise to become a global top department store, continuing innovation to further elevate the status of K-department stores."