Shinsegae Department Store Gangnam, the top single-location earner among domestic department stores, has once again moved to swap out food and beverage brands. The food hall content at Shinsegae Department Store Gangnam wrapped up a revamp last year as the dessert-focused "Sweet Park," the gastronomy-focused "House of Shinsegae," and the renewed "Shinsegae Market" opened in sequence. The retail industry sees Shinsegae Department Store as having reorganized around F&B brands with strong buzz and drawing power. That runs counter to the premium direction taken in fashion, accessories, and home categories.
According to the retail industry on the 28th, Shinsegae Department Store Gangnam plans to newly introduce the specialty coffee brand "Categorique," which uses premium beans, at the 11th-floor restaurant zone. Categorique is a coffee brand based on specialty brewing. Shinsegae Department Store took part from the planning stage. It is not merely a space that sells drinks, but one designed so customers can discover their preferences and sensibilities. A Shinsegae Department Store official said the brand name "contains the meaning of a 'small right answer' found within different tastes."
Some of the brands in the Sweet Park on basement level one are also changing faces. In the spot formerly occupied by the SPA apparel brand H&M, a "Pompompurin" cafe will open. The Pompompurin cafe is a themed cafe that uses Pompompurin, a popular character from Japanese character company Sanrio. There is a strong possibility that character fans will continue to flow in. Beyond drink sales, it is also counting on some demand for purchasing souvenirs (goods). It also can expect a social media word-of-mouth (viral) effect.
The Chinese premium milk tea brand CHAGEE, which has recently been gaining popularity, is also coming in. A feature is that the brand, with heavy takeout demand, has a high table turnover. It is also a brand with many consumption verifications on social media (SNS) lately.
The upscale yoshoku restaurant "Cassa Pabo," run directly by Shinsegae Department Store, will make way for the U.S. Mexican fast-casual brand Chipotle. As a result, Cassa Pabo will give up its spot at the Gangnam location following the Hoehyeon (main) store of Shinsegae Department Store. The retail industry interpreted this as prioritizing brands with proven consumer draw over differentiation through department store-operated in-house brands.
In the F&B industry, this is seen as a shift toward brands with strong drawing power and buzz. An F&B industry official said, "Both Chipotle and CHAGEE are liked by younger generations and are easy to go viral," adding, "They can also be seen as brands that are easy for the public to access, so Shinsegae Department Store appears to have focused on buzz rather than premiumization as its brand strategy in the food and beverage sector."
Shinsegae Department Store has recently been focusing on increasing and strengthening food and beverage content. As department stores evolve from spaces that sell goods into complex content spaces that propose consumers' tastes and experiences, food and beverage content is regarded as a core category that boosts dwell time and satisfaction.
In the retail industry, this overhaul is seen not just as a brand swap, but as part of reinforcing the Gangnam location's role as a "gastronomic destination." The analysis is that it is evolving into a space where the food and beverage content itself becomes the reason to visit, not just shopping. A retail industry official said, "Only when the food and beverage category is properly in place does the department store itself become a venue for gatherings and meetings, which then connects to further consumption stimulation."