The competition among department stores is evolving. Rather than simply selling products, they are now attracting customers with popular dining options and desserts, while encouraging repeat visits through interest-based communities focused on sports and wine. The goal is to create reasons for customers to stay longer and connect that time to purchases in fashion and luxury goods.
According to industry reports, in the first half of this year, the food and beverage (F&B) sales growth rates for Lotte, Shinsegae, and Hyundai department stores all exceeded their overall sales growth rates. Lotte Department Store's F&B sales increased by 20%, surpassing its overall sales growth of 15%. Shinsegae Department Store saw a 29.1% rise in F&B sales, significantly outpacing its overall growth of 23.6%. Notably, the number of customers in food halls rose to 24 million, an 11% increase, with new customers making up 30% of that total. Hyundai Department Store also reported a 22.8% increase in F&B sales, exceeding its overall growth of 20.7%.
Department stores are transforming offline visits into unique consumer experiences by featuring dining options, desserts, and pop-up shops that cannot be easily replicated online. Lotte Department Store has introduced a premium grocery store, 'Le Picerie,' and a food hall at its Nowon location, while Shinsegae's Gangnam branch has expanded its food space to approximately 6,000 square meters. Hyundai Department Store is showcasing F&B brands through pop-ups, with successful brands transitioning to permanent locations.
The trend of enhancing so-called 'community commerce' is also on the rise. In the past, department store customer management focused on identifying VIPs based on purchase amounts and offering concentrated benefits. Recently, however, the approach has broadened to build relationships based on customers' interests in areas such as work, sports, and wine.
Lotte Department Store operates an 'Office Club' membership targeting office workers, offering monthly discounts and F&B vouchers. Shinsegae's South City branch has a 'Sports Crew' membership for customers purchasing in sports, fashion, and golf categories, allowing them to earn mileage based on spending. Hyundai Department Store's wine membership, 'Wajit,' goes beyond discounts to foster interactions among members through offline parties, gala dinners, and performances.
If F&B serves as the entry point for attracting new customers, community engagement is the mechanism for encouraging repeat visits. The strategy aims to create a flow of 'attraction → stay → revisit → purchase' by drawing customers in with dining options and pop-ups, then connecting them to community experiences.
An industry insider noted, "F&B offers a more accessible price point to experience the latest trends compared to luxury goods or fashion, significantly increasing visit frequency. Customers who enjoy meals and desserts often transition to purchasing in other categories, making it crucial to enhance the cross-purchase rate to determine the success of department store content investments."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.