10-04-2025
Shinsegae Opts For Chanel-Anchored ‘Culture Hub' To Pull In Shoppers
Shinsegae, one of South Korea's biggest retailers, has carefully restored a former bank to open a new retail venue in the same vicinity as its giant duty-free shopping tower in the popular Myeong-dong shopping district in Seoul.
The department store group has just unveiled 'The Heritage', which the retailer hopes will become the capital's go-to spot for all things culture, with a big dose of shopping, most of it luxury, as part of the attraction for visitors.
The restoration of the 90-year-old historic Jeil Bank headquarters took a decade and was opened on Wednesday. Its six levels (including basement) now have a retail focus, but also include a healthy dose of history, Korean art, contemporary artifacts, fashion, and exhibitions.
The ground and second floors are dedicated to Chanel, where an expansive store has been designed by New York City architecture firm Peter Marino, which has also created Chanel's first watches and jewelry boutique in the U.S. on Fifth Avenue. Shinsegae describes the two Chanel floors as 'the ultimate expression of modern luxury, blending seamlessly with the building's historical elegance.'
Other floors include a museum where contemporary artifacts and archival photographs are on display that track the story of Korea's retail industry. Digitally restored images of Myeong-dong from the 1930s and 1950s transport visitors back in time, offering a rare glimpse into old Seoul.
In keeping with The Heritage name, the building, which stands in the shadow of the Shinsegae Duty Free tower, also boasts a space on the top floor featuring Korean art and crafts. Here, the retailer hopes to dazzle foreign visitors with items that showcase unique traditional craftsmanship techniques.
Myeong-dong is one of Korea's most vibrant commercial districts, attracting millions of visitors annually. According to the Korea Culture & Tourism Institute (KCTI), the area is regularly named the 'number one favorite spot in Korea' among tourists and, despite a retail downturn in recent years—particularly impacting the downtown duty-free business, Myeong-dong remains a hotspot for shopping and culture.
All the big retail names in the market like Lotte Duty Free, The Shilla Duty Free, and Hyundai Duty Free are struggling to return to form and have been attempting to reinvent themselves, with culture being one of the pivots, as well as discounting. Last year, Lotte took the popular culture route with a Snoopy pop-up, a character beloved by Koreans, as there has been a shift in focus to outbound travelers.
The just-released Global Powers of Retailing 2025 report from Deloitte ranks the world's biggest retailers based on their 2023 performances. Both Lotte Shopping and Shinsegae fell down the list by 10 places and 48 places respectively, indicating just how difficult conditions are in Korean retailing.
Last year, conditions improved with statistics from the Ministry of Trade, Industry & Energy (MOTIE) suggesting 2024 retail sales rose by 8.2% year-over-year. However that was driven by online, with offline only increasing 2%.
Founded in 1963, Shinsegae was Korea's first home-grown department store and it pioneered the concept of an in-store-art gallery. It remains a favored destination in Seoul and The Heritage, together with two other buildings, The Reserve and The Estate, essentially all in the same block, the retailer hopes to keep its reputation as a must-visit spot in the city.
The Reserve is set to be fully refurbished in the second half of this year and is expected to house the largest Louis Vuitton and Hermès stores in South Korea, making it a magnet for the rising number of international visitors to the country, and keeping Shinsegae in the limelight.
