What: Korean department stores are entering in the second-hand business in order to remain relevant to younger generations.

Why it is important: Even in such a hot market, customers are becoming price-conscious and concerned about the environment. Second-hand is now a worldwide trend in department stores, even though the profitability of such operations remains to be proven.

Korean department stores are increasingly looking at second-hand items in order to attract younger and price-conscious customers. With that in mind, Hyundai has opened an entire floor dedicated to second-hand in its Sinchon branch (Western Seoul), after a sneakers-only resell store in the Hyundai Seoul which opened in February 2021 and proved successful in attracting new customers.

otte is testing the idea through popup stores, the latest one being a second-hand store called “Closet Share” in Busan in September, which sold out within two days. The company also invested in Joongonara, the largest e-market for second-hand products in Korea, for $23.04 million.

To be noted, Shinsegae also invested in another second-hand specialist last January.

Hyundai and Lotte venture into second-hand items stores