Landmark war in Myeong-dong: Lotte, Shinsegae face off in flagship showdown
South Korea's retail giants, Lotte and Shinsegae, are on a collision course over department store domination of Seoul's Myeong-dong district, racing to reinvent their retail strongholds to lure young, high-spending consumers.
As one of Seoul's premier shopping meccas for locals and tourists from overseas, the district holds deep legacy for both department store giants -- home to their first flagship stores -- and offers opportunities to synergize their retail and accommodation businesses.
Lotte Department Store is set to shutter its youth-focused Young Plaza in Myeong-dong for a sweeping renovation starting in April. It marks the first major overhaul since the plaza's debut in 2003.
Staying true to its youthful identity, Young Plaza has consistently introduced trendy fashion brands and shops catering to younger tastes.
Central to the overhaul is the creation of a dedicated zone highlighting trendy Korean products designed to attract Gen Z shoppers from around the globe with a blend of fashion, food and beverage attractions.
The revamped plaza is also expected to create synergy with Lotte's other department store buildings in the area, where renovation efforts are already afoot.
Lotte has been upgrading its main flagship department store since 2019 through phased renovations, introducing luxury fashion zones, gourmet food halls and sports and leisure areas. Last December, it unveiled a newly renovated beauty hall on the basement floor -- now the largest of its kind among department store chains in the country.
Later this year, Lotte plans to unveil a K-fashion specialty hall at its main branch, while its luxury annex, Avenuel, is also set to undergo its own makeover soon.
All of these efforts fall under a broader vision to bring new life to Lotte Town Myeong-dong, according to the company, via a grand plan to transform the area into an all-in-one urban shopping complex.
'Once the renovations are completed by the end of 2027, Lotte Town Myeong-dong will emerge as the premier shopping, tourism and cultural hub of northern Seoul,' a company official said.
Lotte's bold strategy seems like a calculated move to counter Shinsegae's move to broaden its retail footprint, also in Myeong-dong.
In terms of annual revenue last year, Lotte's Myeong-dong branch outshines Shinsegae's, ranking fourth nationwide with 2.05 trillion won ($1.4 billion), while Shinsegae's Myeong-dong store trails in tenth place with 1.19 trillion won.
In his New Year address, Shinsegae Department Store CEO Park Joo-hyung conveyed a clear ambition to turn the flagship store into a vast "townlike" shopping complex.
Shinsegae's renovation push marks its largest makeover since opening its new wing, coming 12 years after its last major revamp. The overhaul aims to lure high-spending consumers seeking luxury brands while also tempting consumers with an upgraded selection of dining options.
With the main building and the new wing focusing on luxury goods, fashion and dining experiences, the former SC First Bank building is being repurposed into a luxury boutique center slated to open early next month, according to the company.
'The new wing has been revamped by expanding its luxury and jewelry portfolio and introducing a range of popular dining establishments,' a Shinsegae official said. 'We plan to keep capitalizing on our unrivaled brand competitiveness to deliver fresh shopping experiences to our customers.'
According to industry insiders, the rivalry between Lotte and Shinsegae underscores a broader trend in the retail sector, where the drive to offer exclusive, offline shopping experiences -- the kind e-commerce platforms can't replicate -- is taking center stage.
'With foreign tourists returning to Myeong-dong, Lotte and Shinsegae are battling for the crown as the top retail destination,' a retail industry official said, adding that the success of their strategies could redefine department store playbooks in today's postpandemic retail landscape.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
an hour ago
- Korea Herald
Seoul's MASGA initiative weighs anchor ahead of Lee-Trump summit
Korean president may visit Hanwha Philly Shipyard during US trip; acting US ambassador to Korea visits HD Hyundai's shipyard in Ulsan South Korea has promptly begun taking action to advance its US shipbuilding cooperation project dubbed 'Make American Shipbuilding Great Again,' or 'MASGA,' as Seoul prepares for the upcoming first summit between President Lee Jae Myung and US President Donald Trump. Minister of Industry, Trade and Energy Kim Jung-kwan on Thursday highlighted the importance of shipbuilding cooperation between Korea and the US as he attended the naming ceremony of two liquefied natural gas carriers, which were among the five LNG carriers ordered by an American client in 2022. "MASGA is a win-win package project that supports the revival of the American shipbuilding industry by investing in US shipyards, fostering skilled personnel and rebuilding supply chains while creating opportunities for our companies to enter a new market," said Kim in his congratulatory speech at the event. "To back up such efforts, the (Korean) government will set up a council of related institutes as soon as possible and work with the US on a constant basis to create concrete achievements." President Lee is set to visit the US from Aug. 24 to 26 and meet with Trump at the White House in Washington, DC, on Aug. 25. Seoul's presidential spokesperson Kang Yu-jung told reporters on Tuesday that there is a good chance Lee could visit Hanwha Philly Shipyard during his trip, possibly even accompanied by US officials. 'Based on the tariff negotiations, the two leaders are expected to discuss ways to further strengthen economic cooperation, including manufacturing sectors such as semiconductors, batteries and shipbuilding, and economic security partnerships such as high-tech and key minerals,' said Kang in a briefing. Hanwha Philly Shipyard, which was acquired by Korean conglomerate Hanwha Group for $100 million last year, is about 218 kilometers, or a drive of around two and a half hours, from the White House. Because the summit venue and the Korean-owned US shipyard are relatively close, speculation is brewing that Lee and Trump might both wear caps bearing the MASGA slogan to reemphasize their strong alliance. Korea previously presented the MASGA caps, which were designed after Trump's 'Make America Great Again' campaign hats, to US officials during the last-minute tariff negotiations in late July. John Phelan, US Secretary of the Navy, and Russ Vought, director of the White House Office of Management and Budget, also toured Hanwha Philly Shipyard on July 30, right before Korea and the US struck the tariff agreement, signifying the potential for the Korean-owned shipyard to help rebuild America's maritime manufacturing capabilities. HD Hyundai, another Korean shipbuilding conglomerate, announced that high-ranking officials from Korea and the US visited the headquarters of HD Hyundai Heavy Industries in Ulsan on Wednesday to discuss ways to enhance Korea-US shipbuilding cooperation. According to HD Hyundai, a briefing on the company's shipbuilding capabilities and technologies was provided to Minister of Foreign Affairs Cho Hyun, acting US Ambassador to Korea Joseph Yun and National Assembly Foreign Affairs and Unification Committee Chairman Kim Seok-ki. The officials were also given a tour of the shipyard. 'Seeing the shipyard firsthand has strengthened my confidence in the MASGA project's success. We will closely follow its progress to ensure that it moves forward smoothly,' said Cho. Several members of the National Assembly's Foreign Affairs and Unification Committee also joined the visit as lawmakers reviewed measures to support the success of the MASGA project. 'With the MASGA project emerging as a new symbol of the Korea-US alliance, HD Hyundai is committed to playing our part and providing support for its success,' said Lee Sang-kyun, CEO of HD Hyundai Heavy Industries. 'We look forward to advancing the interests of both nations and the future of the shipbuilding industry.' Both Hanwha and HD Hyundai have been actively seeking ways to advance shipbuilding partnerships with the US, securing maintenance, repair and overhaul, or MRO, contracts with the US Navy while expanding partnerships with American shipyards. Earlier this month, Seoul said MASGA played a critical role in reaching the final tariff deal with Washington as the Trump administration has been reiterating the need to revive America's shipbuilding industry and curb China's dominance in the global shipbuilding sector. For MASGA, Korea committed a $150 billion shipbuilding cooperation fund for domestic shipbuilders to invest in the US and back the American shipbuilding sector's revitalization.
Korea Herald
3 hours ago
- Korea Herald
S. Korea to launch consultative body to support MASGA project: industry minister
The South Korean government will launch a consultative body of relevant ministries to support the shipbuilding cooperation initiative with the United States, the industry minister said Thursday, noting the project will create new opportunities for the Korean shipbuilding industry. Industry Minister Kim Jung-kwan unveiled the plan during the naming ceremony of two liquefied natural gas carriers to be delivered to the US by Korean shipbuilding giant Hanwha Ocean Co., held at the company's shipyard in Geoje, about 330 kilometers southeast of Seoul, according to the Ministry of Trade, Industry and Energy. "The government will swiftly form a consultative body comprising relevant agencies to support the Make American Shipbuilding Great Again project, while closely communicating with the US side to create tangible results," he said. MASGA refers to South Korea's proposal for bilateral shipbuilding cooperation with the US made during its tariff negotiations with the Donald Trump administration. Late last month, the Seoul government struck a trade deal with the Trump administration by pledging to invest $150 billion in the MASGA project and another $200 billion for bilateral cooperation in strategic industries, such as semiconductors, batteries and biotech. "MASGA is a win-win project that supports the revitalization of the US shipbuilding industry by facilitating investment in American shipyards, while helping them nurture a skilled workforce and rebuild supply chains," Kim added, according to the industry ministry. "The project will also create new opportunities for our companies to enter new markets." The ministry said Hanwha Ocean's recently constructed LNG carriers are the first two out of five vessels to be delivered to the US for the latter's LNG exports. Hanwha won the order, worth $1.2 billion, in 2022. The deal reaffirms the top-tier competitiveness of Korean shipbuilders in the high-value LNG carrier market, the ministry said, noting that more than 70 percent of 760 LNG carriers currently operating worldwide have been built by Korean shipbuilders. Notably, in the first half of this year, Korean companies secured 100 percent of global LNG carrier orders, the ministry highlighted. Following the naming ceremony, the industry minister also met with Hanwha Ocean officials and the crew members of US Navy vessel Charles Drew at the Geoje shipyard. Hanwha Ocean is currently providing maintenance, repair and overhaul services for Charles Drew, which is the third US naval vessel to undergo MRO at the Hanwha shipyard. "The US naval vessel MRO project represents the starting point of Korea-US shipbuilding cooperation, and just like the previous two MRO projects, we hope Charles Drew will be reborn as a new ship through the advanced capabilities of Korean shipbuilding," Kim said. In August last year, Hanwha secured an MRO contract for the US Navy's logistics support ship Wally Schirra, marking the first such deal for a Korean shipbuilder. In November, it also won an MRO deal for the replenishment oiler Yukon. (Yonhap)
Korea Herald
4 hours ago
- Korea Herald
Import prices rebound for first time in 6 months: BOK
Import prices rose for the first time in six months in July, driven by rising global oil prices and a weaker Korean won, central bank data showed Thursday. The import price index went up 0.9 percent last month from a month earlier, rebounding after a five-month losing streak, according to preliminary data from the Bank of Korea (BOK). The increase came as the average price of Dubai crude, South Korea's benchmark, climbed 2.3 percent from a month earlier to an average $70.87 per barrel in July. Also attributable was the local currency falling 0.6 percent against the US dollar to an average 1,375.22 won per dollar in July, the BOK said. Import prices are a key factor of inflation as they affect production costs and consumer prices through the supply chain. The export price index also rose for the first time in four months in July, gaining 1 percent from the previous month, the data showed. (Yonhap)
