Record-Breaking Performance
Shinsegae Department Store has made headlines with its Gangnam Branch, which recently surpassed 3 trillion Korean won in cumulative sales this year. This impressive milestone was achieved on the 7th, marking a significant achievement that occurred three weeks earlier than the same date in 2023 and nearly two months ahead of the previous year’s target. The Gangnam Branch became the first domestic single store to exceed 3 trillion Korean won this year, showcasing its remarkable performance.
A representative from Shinsegae Department Store highlighted the branch’s consistent success, stating, “The Gangnam Branch has recorded consecutive annual sales of 3 trillion Korean won since 2023. Three consecutive years is a domestic first.” This accomplishment underscores the branch’s strong position in the market and its ability to consistently meet and exceed expectations.
Luxury Goods Sector Dominance
One of the key factors contributing to the Gangnam Branch’s success is the strong performance of the luxury goods sector. Sales in this category accounted for the largest share, making up 40% of total sales. The branch houses several luxury goods stores, including major brands such as Hermès, Louis Vuitton, and Chanel. Additionally, it features numerous first-in-Korea and one-of-a-kind stores, such as Louis Vuitton’s jewelry specialty store, which further enhances its appeal to high-end customers.
Rising Influence of VIP Sales
Another notable trend at the Gangnam Branch is the increasing influence of VIP and premium customer sales. For the first time this year, the proportion of sales attributed to these customers exceeded half, reaching 52%. Overall VIP sales grew by over 8%, indicating a strong demand from affluent shoppers. The number of Red-tier customers, who are the entry-level grade in Shinsegae Department Store’s VIP system and make purchases of 5 million Korean won or more, increased by approximately 10%.
Future Prospects
Looking ahead, Shinsegae Department Store is optimistic about the potential for the Gangnam Branch to achieve even greater success. The company anticipates that the branch could potentially reach annual sales of 4 trillion Korean won in the future. If this target is met, the Gangnam Branch would stand shoulder to shoulder with global luxury department stores such as Japan’s Isetan Department Store, which reported approximately 4.3 trillion Korean won in 2024, and the UK’s Harrods Department Store, which reported approximately 4.8 trillion Korean won in 2024 based on disclosure reports.
This continued growth and success highlight the Gangnam Branch’s position as a leader in the retail sector and its ability to attract and retain high-value customers. With its strong performance in the luxury goods sector and a growing base of VIP customers, the branch is well-positioned for future achievements.