What: Major department stores in Korea are spending over KRW 1 trillion (USD 755 million) this year on renovations.

Why it is important: The amount invested on renovations is up 32.8% year on year as customers are increasingly viewing department stores as places to gain new experiences.

Three department stores, Lotte, Shinsegae, and Hyundai, are spending a total of KRW 1.24 trillion to renovate their facilities to create experiential spaces in hopes of attracting young consumers.

Lotte is investing KRW 388.9 billion this year and KRW 432 billion next year in renovations. Its Suwon branch is going through a large-scale renewal to acquire more foreign brands and expand fashion stores and its Young Plaza location will be transitioned into a food and beverage space.

Shinsegae will invest KRW 586.8 billion as it renovates existing branches and opens new branches. Its Hermes store in its central Seoul branch will be turned into two stories and the sporting goods section of its Gangnam branch is currently under renovation.

Hyundai is spending KRW 260 billion to upgrade or open new branches. The Apgujeoung branch and Pangyo branch will be completely transformed, with the former’s food court being converted into a premium dining hall and the latter recently opening a section for foreign brands.

Department stores renovate their way to the future