E-MART(139480) on the 27th reopened the Wolgye branch in Nowon District, Seoul, as "Starfield Market." Starting with the Jukjeon branch in 2024, it is the fifth branch following Ilsan, Dongtan, and Gyeongsan last year, and the first in Seoul. This is the first time a single building has housed a big-box E-MART, the warehouse-style discount store Traders, and outside brand shops all together. The concept targets families in their 30s and 40s with young children as a "young family community market."
The Wolgye branch is the store E-MART turns to whenever it tries a new experiment. After opening in 2004, it welcomed Seoul's first Traders in 2019 and underwent a major renovation in 2020. With a sales floor of 21,785 square meters (6,590 pyeong), it is the largest E-MART in Seoul. The surrounding population, including Nowon, Seongbuk, and Dobong districts, reaches 1.4 million, and openings of the GTX-C line and the Dongbuk Line are also planned.
The focus of this renovation is the flow of movement. It is designed to guide visitors naturally from the first-floor "Sunlight Plaza" to the second-floor central "Book Ground" and "Kids Ground." Rest and cultural spaces total about 180 pyeong, of which 157 pyeong is Book Ground. Kids Ground is divided by age: the area connected to Book Ground offers a reading space for children 3 and older, while the inner side of the food court has a play area for infants and toddlers. Nearby are Starbucks, Young Poong Bookstore, Champion kids' cafe, and Elephant food court, with the cultural center and an infant lounge linked along the route. The layout lets family members stay together in one building for half a day without splitting up.
The tenant brands also saw a major overhaul. About 80% of the food and beverage (F&B) brands were replaced or repositioned, bringing in Ashley Queens, Shima Sushi, Seocheong Seaweed Soup, and Soy Yonnam. The first-floor Olive Young was expanded to 120 pyeong, triple its previous size, and the second floor added Shinsegae Factory Store, Decathlon, and ABC-Mart. In October, the ultra-low-price household goods store "Wow Shop" will open at 100 pyeong, and in November, Uniqlo and Muji will each open at over 300 pyeong. Pets under 5 kilograms that are up to date on vaccinations are allowed in about 60% of the store.
E-MART is backing this model because of the numbers. According to E-MART, sales at the four existing Starfield Market branches in the first half rose 28% from a year earlier. That is more than 10 times the 2.7% growth in E-MART's total gross sales over the same period. In the second-quarter earnings release earlier, the company also said sales and visitor counts at the three renovated branches increased by an average of 79.5% and 42.4%, respectively. Notably, the share of long-stay customers who remained for three hours or more rose an average of 90.8%. The company's own tally supports the hypothesis that the longer people stay, the more they spend.
Looked at another way, the remaining branches that were not renovated essentially stood still. On a standalone basis, E-MART's total gross sales in the first half were 9.1581 trillion won, up just 2.7%. Operating profit rose 171.9 billion won, up 15.4%, but the gross margin in the semiannual report was 27.1%, virtually unchanged from a year earlier. Rather than improved margins, the profit is closer to gains made by cutting expense.
E-MART is formally pushing "stay time" as a strategy. As big-box stores evolve from simple distribution channels into lifestyle shopping channels, the company aims to build a stable revenue base by combining space and content to increase customer inflow and time spent. "Store innovation," which bundles renovations of existing locations with new openings, has already become one of E-MART's core sales strategies. E-MART plans to continue Starfield Market renovations and new openings in the second half.
Longer stays also bring revenue from attracting outside brands. E-MART operates a model that boosts rental revenue by bringing tenant shops into complex malls and big-box stores. Observers say the center of gravity is shifting away from a retail-only model of selling goods it buys directly, toward selling the space itself as the product.
An E-MART official said, "With this renovation, the Wolgye branch has elevated its offline competitiveness by becoming a Starfield Market that includes both E-MART and Traders," adding, "We will develop it into a space where the whole family can enjoy culture and relaxation beyond grocery runs and shopping, and establish it as a landmark representing northeastern Seoul."