Foreign tourists have emerged as a key customer base for domestic department stores. Lotte Department Store has become the first in the industry to surpass 1 trillion won in foreign sales this year, while Shinsegae and Hyundai Department Stores are also reporting sales in the 800 billion won range, positioning them to join the '1 trillion club' by year-end. Foreign consumer spending, previously focused on luxury goods, is now expanding to include K-fashion, beauty, and food.
According to industry reports, as of October 6, Lotte Department Store's cumulative foreign sales have exceeded 1 trillion won. The store surpassed its previous record of 734.8 billion won in foreign sales for the entire year last July. In Myeongdong, Lotte Town generated approximately 520 billion won, accounting for more than half of its total foreign sales.
From January to September, Shinsegae Department Store reported foreign sales of 850 billion won, more than doubling compared to the same period last year. At the main store, one in three visitors is a foreigner, and the Centum City branch also saw foreign sales increase more than twofold compared to the previous year.
Hyundai Department Store's cumulative foreign sales from January to October 5 reached 805 billion won. The foreign sales at The Hyundai Seoul increased by 135% year-on-year, with one in four visitors being a foreigner. Since its opening, The Hyundai Seoul has welcomed visitors from 182 different nationalities.
However, the criteria for calculating foreign sales differ among the three companies. Shinsegae counts only pure department store sales, while Lotte includes outlets and malls, and Hyundai includes outlets as well. The reporting periods also vary: Lotte reports as of October 6, Shinsegae from January to September, and Hyundai up to October 5.
Meanwhile, the regions contributing to foreign spending are diversifying. Foreign sales at Lotte Town Jamsil have doubled compared to last year. Notably, customers from North America and Europe now account for 35% of total foreign sales, a 15 percentage point increase since 2019. Foreign sales outside the metropolitan area at Lotte Department Store have increased 2.5 times, with stores in Busan seeing a 150% rise and those in Gwangju and Jeonju increasing by 100%.
In addition to the nationalities of foreign customers, the types of products being purchased are also changing. Lotte Department Store's foreign sales of luxury goods and K-fashion have both more than doubled compared to last year, while food court and restaurant sales increased by 50%. Shinsegae also reported a 129.3% increase in foreign luxury sales in the first half of the year, with men's fashion up 110.0%, women's fashion 89.4%, cosmetics 87.3%, and food and beverage 62.9%, indicating a broadening of consumer spending.
Department stores are intensifying their competition to retain foreign customers as long-term clients rather than one-time tourists. Lotte is expanding online pre-registration for its 'Lotte Tourist Membership,' which has 250,000 subscribers, and enhancing benefits at regional stores.
Shinsegae is currently hosting a 'Global Shopping Festa' at its main store, Gangnam branch, Centum City branch, and Times Square branch, featuring 120 brands in fashion, beauty, and K-food. Hyundai is adding real-time voice translation features to its AI shopping assistant, 'Heidi Global,' and expanding VIP partnerships with overseas retailers such as Siam Piwat in Thailand, Hankyu Department Store in Japan, and Marina Bay Sands in Singapore.
An industry insider noted, "The increase in foreign sales is not limited to specific stores or luxury goods but is spreading across fashion, beauty, food, and regional stores, marking a significant shift from the past. Department stores are now viewing foreign customers as a core clientele that requires ongoing management rather than just transient tourists."
According to industry reports, as of October 6, Lotte Department Store's cumulative foreign sales have exceeded 1 trillion won. The store surpassed its previous record of 734.8 billion won in foreign sales for the entire year last July. In Myeongdong, Lotte Town generated approximately 520 billion won, accounting for more than half of its total foreign sales.
From January to September, Shinsegae Department Store reported foreign sales of 850 billion won, more than doubling compared to the same period last year. At the main store, one in three visitors is a foreigner, and the Centum City branch also saw foreign sales increase more than twofold compared to the previous year.
Hyundai Department Store's cumulative foreign sales from January to October 5 reached 805 billion won. The foreign sales at The Hyundai Seoul increased by 135% year-on-year, with one in four visitors being a foreigner. Since its opening, The Hyundai Seoul has welcomed visitors from 182 different nationalities.
However, the criteria for calculating foreign sales differ among the three companies. Shinsegae counts only pure department store sales, while Lotte includes outlets and malls, and Hyundai includes outlets as well. The reporting periods also vary: Lotte reports as of October 6, Shinsegae from January to September, and Hyundai up to October 5.
Meanwhile, the regions contributing to foreign spending are diversifying. Foreign sales at Lotte Town Jamsil have doubled compared to last year. Notably, customers from North America and Europe now account for 35% of total foreign sales, a 15 percentage point increase since 2019. Foreign sales outside the metropolitan area at Lotte Department Store have increased 2.5 times, with stores in Busan seeing a 150% rise and those in Gwangju and Jeonju increasing by 100%.
In addition to the nationalities of foreign customers, the types of products being purchased are also changing. Lotte Department Store's foreign sales of luxury goods and K-fashion have both more than doubled compared to last year, while food court and restaurant sales increased by 50%. Shinsegae also reported a 129.3% increase in foreign luxury sales in the first half of the year, with men's fashion up 110.0%, women's fashion 89.4%, cosmetics 87.3%, and food and beverage 62.9%, indicating a broadening of consumer spending.
Department stores are intensifying their competition to retain foreign customers as long-term clients rather than one-time tourists. Lotte is expanding online pre-registration for its 'Lotte Tourist Membership,' which has 250,000 subscribers, and enhancing benefits at regional stores.
Shinsegae is currently hosting a 'Global Shopping Festa' at its main store, Gangnam branch, Centum City branch, and Times Square branch, featuring 120 brands in fashion, beauty, and K-food. Hyundai is adding real-time voice translation features to its AI shopping assistant, 'Heidi Global,' and expanding VIP partnerships with overseas retailers such as Siam Piwat in Thailand, Hankyu Department Store in Japan, and Marina Bay Sands in Singapore.
An industry insider noted, "The increase in foreign sales is not limited to specific stores or luxury goods but is spreading across fashion, beauty, food, and regional stores, marking a significant shift from the past. Department stores are now viewing foreign customers as a core clientele that requires ongoing management rather than just transient tourists."
* This article has been translated by AI.
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