[News Today] REINVENTING DEPARTMENT STORES

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Many turn to online these days when it comes to shopping. This trend poses a significant challenge for retailers, particularly department stores. How can they encourage more visits and longer stays? We look at their strategy.

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People enjoy a panoramic city view while having meals.

This is a food court inside a shopping mall where people have numerous menu options from must-go restaurants around the country.

This dining area was set up in place of a household appliance section.

Lim Hyeon-ju/ Suwon resident
I come here often because there are many things I can enjoy with my children and areas where they can play freely.

This futuristic multifunctional shopping mall replaced a department store located near a train station.

There is no longer distinction between a shopping mall and a department store. Inspired by the fact that families take up most of the customer base, there are areas where people can eat and enjoy various experiences all over the mall.

Chung Joon-ho/ Lotte Department Store CEO
Including the recent investments, we plan to invest about KRW 7 tn (USD 5 bn) by 2030 and operate 13 shopping malls.

Another department store is also undergoing transformation into a multifunctional shopping mall that provides experiences in shopping, entertainment, sports, relaxation and recreation.

The goal is to outperform their competitors with sheer scale.

Their main plan is to bring together the existing shopping mall and various entertainment facilities like a theme park and a water park to a site about 1.4 times the size of Yeouido in Hwaseong, Gyeonggi-do Province.

Im Young-rok/ Shinsegae Property CEO
We will build Korea's first Paramount theme park where people can experience various activities.

The three biggest department stores in Korea have seen a growth rate lower than 5% for several years now.

They are being pushed aside by convenience stores and online shopping malls.

Now, they are looking to survive in the retail sector by transforming into one-stop multifunctional shopping malls.