Lotte, Shinsegae, and Hyundai department stores achieved record foreign sales in the first half of 2026. Each company reported sales between 500 billion and 600 billion won, signaling the imminent arrival of the '1 trillion won foreign sales era.' The competition to attract global tourists is intensifying, driven by experiential strategies that combine shopping with K-pop, K-beauty, culinary, and tourism content.
According to industry reports on July 13, Lotte Department Store recorded 640 billion won in foreign sales during the first half of the year, reaching approximately 87% of last year's total foreign sales of 734.8 billion won in just six months. The company anticipates achieving 1 trillion won in foreign sales by the third quarter if the current trend continues.
Shinsegae Department Store also saw a significant increase, with foreign sales rising 120% year-on-year to 580 billion won. This figure represents 90% of its total sales for 2025, which were around 650 billion won, indicating a strong possibility of surpassing 1 trillion won in annual sales. Unlike competitors that include outlet and mall sales, Shinsegae's results are based solely on department store sales.
Hyundai Department Store's foreign sales reached approximately 500 billion won in the first half of the year, showing a rapid increase compared to last year's total of about 700 billion won. Notably, the foreign sales at The Hyundai Seoul, which exceeded 20% of total sales, surged by 134% compared to the same period last year.
Foreign consumer spending is expanding beyond luxury goods to include fashion, beauty, and food and beverage sectors. Lotte Department Store reported a 130% increase in luxury goods sales and a 135% rise in fashion items. Similarly, Shinsegae Department Store experienced high growth rates across most categories, including luxury goods (129.3%), men's fashion (110%), women's fashion (89.4%), cosmetics (87.3%), and food and beverages (62.9%).
The nationalities of foreign customers are also diversifying. At Shinsegae Department Store, the proportion of sales from Chinese customers dropped from 77.5% in 2019 to 48.5% in the first half of this year. In contrast, the share of American customers increased from 1.1% to 19.1%, while other Asian countries, including Southeast Asia, rose from 4.4% to 14.9%. Lotte Department Store's main branch is also seeing an increase in visitors from the Americas and Europe, beyond just the Chinese market.
Department stores are accelerating their competition by combining tourism, shopping, and cultural content. Lotte Department Store is attracting a global young clientele with its K-Fashion specialty store, 'Kinetic Ground,' which generates about 70% of its sales from foreign customers. In Jamsil, the store has established a tourism course linking Lotte World Tower, Lotte World Mall, and the aquarium. The Busan main store and Dongbusan branch reported sales growth rates of 150% and 170%, respectively, due to the increase in foreign tourists.
Shinsegae Department Store is enhancing its landmark strategy by showcasing K-pop content, including performances by BTS and Boynextdoor, at its Myeongdong flagship store, combining shopping and tourism. The Gangnam branch is developing into a global shopping hub by integrating culinary experiences with the Han River tourism district and Sweet Park, while the Centum City branch saw a 230% increase in foreign sales, driven by a rise in cruise tourists in Busan.
The enhancement of services for foreign customers is also ongoing. Hyundai Department Store introduced the industry's first AI shopping assistant, 'Heidi Global,' last June, and added voice translation features in June of this year. As of July 1, it began supporting Spanish and French. The store has partnered with Thailand's Siam Piwat Group, Japan's Hankyu Department Store, and Singapore's Marina Bay Sands to offer exclusive VIP services for their customers visiting The Hyundai Seoul and Trade Center branches.
Lotte Department Store operates official channels on Chinese platforms such as Xiaohongshu, Godukjido, and Dazhongdianping, and plans to introduce UnionPay QR payments and NFC quick passes in September, a first in the industry. Shinsegae Department Store is also expanding collaborations with global payment platforms like UnionPay, Alipay, Line Pay, and JCB, while enhancing country-specific promotions.
An industry insider stated, "Attracting foreign customers has become a core growth strategy for department stores, going beyond mere sales expansion. We expect competition to differentiate through store-specific tourism content, AI services, and global payment systems to intensify further."
* This article has been translated by AI.
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