Hyundai Department Store said on the 28th that the Pangyo branch surpassed 2 trillion won in annual sales 10 years and 4 months after opening. It achieved 2 trillion won in annual sales in the shortest time among domestic department stores. Opened in Aug. 2015, the Hyundai Department Store Pangyo branch joined the 1 trillion won annual sales club in 2020. At that time, it was also the fastest achievement among domestic department stores.
The luxury institutional sector is behind the achievement of 2 trillion won in annual sales. Since opening in 2015, the Pangyo branch has successively brought in global luxury brands, including Louis Vuitton, Cartier, Tiffany, Bulgari, and Piaget.
The Pangyo branch currently has the largest number of luxury brands among all Hyundai Department Store locations, with 96. This year, sales in the luxury watch and jewelry institutional sector at the Pangyo branch rose 51.4% from the same period last year, far outpacing the network average of 28.9%.
The fact that many young and rich people live in Pangyo also played a role. Among VIP customers at the Hyundai Department Store Pangyo branch, those in their 20s and 30s topped 30% for the first time in 2023. The share this year is 32.5%.
Another reason is that the Pangyo branch is becoming a hub department store in the southeastern Gyeonggi region. The number of destination shoppers coming from wide-area trade zones more than 10 kilometers away has been increasing every year. The sales share from wide-area trade zone customers rose from 38.6% in 2015, the first year of opening, to 55.6% this year. This is more than 20 percentage points higher than the Hyundai Department Store network's average sales share from wide-area trade zones (30%).
A Hyundai Department Store official said, "Among all VIP consumers who spend more than 30 million won annually, long-distance customers account for 78.2%," adding, "In addition to the southeastern Gyeonggi region (13.7%) and eastern Gyeonggi region (9.8%), people also come to the Pangyo branch from Seoul's Gangnam area (33.1%) and northern Seoul (13.1%)."
A customer experience innovation strategy centered on experiential content also contributed to the Pangyo branch surpassing 2 trillion won in annual sales. The Hyundai Museum of Kids' Books & Art (MOKA), the only one operated by a domestic department store, is a prime example. The museum filled a space (2,736㎡, 830 pyeong) that could accommodate 40 to 50 apparel stores with two exhibition rooms for children and 6,500 picture books.
An industry-leading food hall—twice the size of a soccer field—that offers customers a superlative gourmet experience is also one of the Pangyo branch's key strengths. The Pangyo branch's food hall now houses more than 120 renowned eateries and food and beverage (F&B) outlets that lead not only domestic but also global gourmet trends.
Meanwhile, the Hyundai Department Store Pangyo branch plans to significantly expand and reopen its first-floor Louis Vuitton store in January next year. It also plans to add a lounge for top-tier consumers as part of efforts to strengthen VIP services.