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| Lotte Department Store's high-end artwork shop "Belle Musee" at Lotte Avenuel World Tower branch / Courtesy of Lotte Department Store |
By Kwak Yeon-soo
Major department stores Lotte, Shinsegae and Hyundai, are paying more attention to bolstering the customer experience and promoting more premium products to compete with online retailers, according to industry officials, Monday.
Officials said they are hosting a series of exhibitions and focusing on premium brands to improve profitability and attract millennials who seek the latest trends.
An intensifying price competition with e-commerce giants, such as Coupang, WeMakePrice and TMON, has also pushed department stores to rethink how they can freshen up the image they present to shoppers.
Since June, Lotte Department Store has been running the special exhibition "Jurassic World" at Lotte Mall Gimpo Airport Branch which features animatronic dinosaurs.
According to data provided by Lotte, the number of new customers who visited the Gimpo Airport Branch increased by 67.7 percent after it launched the exhibition. More than 200,000 visited the exhibition in four months.
In addition, Lotte has been running high-end artwork shop "Belle Musee" at the Lotte Avenuel World Tower branch, which will last until Nov. 30.
It will also transform the outdoor terrace located on the ninth floor of its Avenuel branch to an open space where customers can relax in the shared lounge area.
Lotte is also seeking to renew the beauty section of some branches by bringing in premium brands.
"We've identified that customers have a demand for experience and premium brands," a Lotte Department Store official said.
"We will drop the old tradition of positioning cosmetics brands on the first floor and instead add more premium brands."
Lotte Department Store's operating profit in the July-September period increased 16.8 percent from the same period a year ago.
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| Children experience bungee jumping at the VR zone in the Konkuk University Star City branch of Lotte Department Store in Seoul, Aug. 26/ Yonhap |
Another retail giant, Shinsegae, has run art exhibitions featuring the work of iconic artists such as Andy Warhol, Picasso and Roy Rox Lichtenstein at its store branches.
Meanwhile, its largest store branch located at Busan Centum City has been expanding its customer experience by housing a movie theater, bookstore, Kidzania, ice rink and even a spa.
The customer experience zones account for 30 percent of the Busan Centum City branch, according to Shinsegae.
"In branches where shoppers could engage in other activities besides shopping, they stayed for about five hours, which is almost double the average shopping period of 2.7 hours in regular branches," a Shinsegae Department Store official said.
Shinsegae Department Store's operating profit increased by 12.2 percent in the third quarter from a year earlier.
Hyundai Department Store has also been running "Gallery H" in eight branches, including COEX, Mokdong and Mia, to present about 100 pieces of modern art.
"We will continue to integrate art, culture and shopping, and apply it to more locations to offer differentiated experiences to our customers," a Hyundai Department Store official said.
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