What: Korean department store companies are strongly benefitting from their local customers’ appetite for luxury goods.

Why it is important: Since Korea is a market driven by fashion and beauty, the ability of international department stores company to position themselves as references is key to making sure they capture Korean customers once they are able to travel again.

Shinsegae, Lotte, and Hyundai account for the top 9 department stores in the country (the tenth one is Galleria in Seoul), and they increased their sales performed in stores by +12% during Q1 2022, especially Shinsegae (+18%). It is understood that apparel sales drove this growth.

Analysts see this healthy growth also to be related to international travel restrictions, forcing customers to spend money at home (rising prices have also been mentioned however this has not been a factor for apparel and accessories). This means that high-end players, with a proper offer in luxury brands, have made particularly well.

How Korea’s big 3 department stores are killing it right now