With department stores showing strong performance since the beginning of the year, expectations are growing that regional flagship stores in provincial markets will reach 1 trillion won in annual sales. As Lotte Department Store Incheon sets a goal of 1 trillion won in annual sales this year, Gwangju Shinsegae, representing the Honam region, is emerging as a candidate to be the next 1-trillion-won store. Following Busan and Daegu, a 1-trillion-won store also appeared in Daejeon last year, showing that department store growth is spreading beyond the Seoul-Gyeonggi area to key cities by region.
According to the Ministry of Trade, Industry and Resources' "Sales trends of major retail companies in March 2026" on the 2nd, the average sales per store across 56 domestic department stores continued double-digit growth this year. The year-over-year growth rate came in at 17.4% in January, 30.1% in February, and 18.8% in March. With an increase in foreign tourists and demand for spring outings and the new school term, sales rose evenly across all categories, including overseas luxury brands, fashion and accessories, and children and sports.
Among major offline retail formats, department stores showed the most distinct growth. In March, department store companies' sales rose 14.7% year over year, far outpacing the convenience store growth rate of 2.7%. In contrast, hypermarkets and super-supermarkets (SSM) fell 15.2% and 8.6%, respectively, showing a sluggish trend.
Buoyed by these market conditions, Lotte Department Store Incheon recently set a goal of achieving 1 trillion won in annual sales this year. Lotte Incheon recorded 829.8 billion won in sales last year, ranking 14th among department stores nationwide. To surpass 1 trillion won this year, it needs about 20.5% sales growth from a year earlier.
Lotte Incheon is considered a regional flagship store that draws demand not only from Incheon but also from western Gyeonggi Province, thanks to its locational competitiveness connected to the Incheon Terminal. Unlike other metropolitan cities, Incheon has only Lotte among the five major department store brands—Lotte, Shinsegae, Hyundai, Galleria, and AK—resulting in relatively less competition among operators.
Lotte Incheon also pins hopes on the customer-drawing effect of its renewal. Since 2023, Lotte Department Store has been refurbishing the Incheon store, and most recently revamped the food hall, beauty hall, premium kids hall, women's fashion hall, and luxury fashion hall in sequence. Lotte Group is also pushing to create the third "Lotte Town" after Myeong-dong and Jamsil, with the Incheon store at its center. Lotte Town is a mixed-use retail district that brings together shopping, culture, and entertainment.
Shinsegae Gwangju is also cited as a candidate to be the next 1-trillion-won store as the representative department store of the Honam region. The Gwangju store recorded 819.1 billion won in sales last year, ranking 15th among department stores nationwide.
The Gwangju store is accelerating efforts to strengthen its MD (merchandising) targeting younger customers. Recently, it opened the first offline store in the Honam region for Musinsa Standard, drawing online-based fashion demand offline. The plan is to boost foot traffic by expanding popular fashion and lifestyle brands that have been hard to find in the region.
In addition, Shinsegae is pursuing a complex development project around Gwangcheon Terminal and expanding the department store to increase sales at the Gwangju store and strengthen competitiveness within the region. The plan is to build a landmark department store that combines shopping, culture, and the arts on the bus terminal site to cement its position as the representative commercial district of the Honam region. Once full-scale development begins, it is expected to secure growth potential by absorbing not only existing Gwangju and South Jeolla demand but also external regional demand.
In the department store industry, 1 trillion won in annual sales is regarded not just as a size metric but as a benchmark showing market dominance within a region. Outside the capital area, Shinsegae Department Store Centum City in Busan first reached 1 trillion won in annual sales in 2016 and surpassed 2 trillion won in annual sales in 2023, a first for a regional department store. Lotte Department Store Busan Main Store also broke 1 trillion won in annual sales in 2019, joining the 1-trillion-won competition in the Busan market.
In Daegu, Shinsegae Daegu joined the 1-trillion-won club in 2021. Shinsegae Daegu achieved 1 trillion won in annual sales four years and 11 months after opening in 2016. Last year, it recorded sales in the mid-1.6 trillion won range, maintaining its position as Daegu's No. 1 department store.
Last year, Daejeon also saw its first 1-trillion-won store. Daejeon Shinsegae Art&Science surpassed 1 trillion won in annual sales four years after opening in Aug. 2021.
A department store industry official said, "With 1-trillion-won stores emerging in Daejeon following Busan and Daegu, department store growth appears to be spreading beyond the Seoul-Gyeonggi area to key cities by region."