Global SPA fashion brands that integrate manufacturing and retail are expanding super-sized offline stores again in Korea. In the past, they unveiled large stores in districts centered on heavy foot traffic, but recently they have been shifting to hubs that can capture both foreign tourist demand and the effect of brand experiences.
According to the retail and fashion industry on the 10th, Japanese SPA brand UNIQLO will open the country's largest UNIQLO Myeong-dong store on the 22nd in the Le Méridien Seoul Myeong-dong building in Jung District, Seoul. It is a global flagship store (flagship store) spanning 985 pyeong across the first through third floors above ground. The store plans to showcase product lines covering women, men and infants and toddlers.
UNIQLO once operated a large store on Gangnam-daero in Seoul, but it closed the Gangnam location in 2020 when it began restructuring domestic stores due to the COVID-19 pandemic and the impact of the No Japan boycott of Japanese products. For the same reason, it closed the Myeong-dong location in Jan. 2021. By choosing Myeong-dong over Gangnam, UNIQLO is returning to the Myeong-dong commercial district for the first time in about four years. UNIQLO's position is that there are currently no plans to open a new store in the Gangnam commercial district. A UNIQLO official said, "Aside from the Myeong-dong store, there are no plans to open additional flagship stores for the time being," adding, "There are also no current plans to open a store in the Gangnam commercial district."
The industry views UNIQLO's choice not merely as a new opening but as a "reselection of commercial district." Myeong-dong is a representative tourist district with a high proportion of foreign visitors. As the global K-content boom has brought more foreign tourists to Myeong-dong and revived the area, the move is interpreted as an effort to establish a hub store targeting domestic and overseas customers simultaneously. According to the Korea Tourism Organization (KTO), about 18.9 million foreigners visited Korea last year, up 11.8% from the year before.
A retail industry official said, "More consumers are buying clothes online, but you can't ignore the brand image that a large store in a key district projects. Beyond simple sales, the role of space for brand experiences and hands-on engagement has become important," adding, "For global brands, places like Myeong-dong with heavy tourist inflows also carry strong symbolism."
This is not unique to UNIQLO. Spanish SPA brand ZARA also reopened its flagship store after a renewal in May last year at Noon Square in Myeong-dong, Jung District, Seoul. The store also houses Zacaffe. Zacaffe is a brand cafe introduced by ZARA. Like UNIQLO, ZARA appears to be focusing on the Myeong-dong district to strengthen brand experiences and dwell-time consumption.
In addition, ZARA is moving its existing Gangnam Station store on Gangnam-daero to near Sinnonhyeon Station. The new store is scheduled to open in August at the Toss Office building in front of Exit 7 of Sinnonhyeon Station. A ZARA official said, "This store is not a simple move but one that applies a new concept," adding, "It will operate as the largest in the country, from one basement level to the third floor above ground."
The industry believes store location strategies are shifting away from expanding in areas centered on heavy foot traffic, as in the past, and toward locations that can secure large spaces and implement elements such as customer dwell time and brand experiences. Recently, the Sinnonhyeon area has drawn attention as a suitable location to strengthen brand experiences, as dwell-time consumption linked to hotel and food and beverage (F&B) districts has increased.
A fashion industry official said, "Recently, global SPA brands are focusing on operating symbolic hub stores rather than aggressively increasing the number of stores in core districts that once had heavy foot traffic," adding, "There is a growing trend to strengthen brand experiences." The official added, "Even for the same brand, location choices are changing depending on the core customer base and commercial district strategy."
A retail industry official said, "As K-fashion and beauty gain attention worldwide, Korea is emerging as a market that can gauge Asia's consumer trends," adding, "Global brands are also considering the importance of hub stores that can confirm brand experiences and consumer responses, rather than focusing solely on sales."