What: Korean department stores are expanding cultural centres and academy-style spaces to increase customer engagement and dwell time.

Why it is important: This reflects a broader trend of experiential retail, aligning with recent strategies to drive foot traffic and loyalty.

Korean department stores are intensifying their focus on cultural centres, transforming academy-style spaces to offer a diverse range of classes and workshops in art, cooking, wellness, and traditional culture. This renewed investment aims to keep customers in-store longer and differentiate these retailers from competitors, marking a new phase in retail competition beyond the food-hall boom of recent years. While cultural centres contribute less direct revenue than food halls, they play a crucial role in driving foot traffic and fostering deeper customer engagement. Shinsegae Department Store’s flagship academy, recently expanded and renovated, now offers a broader programme lineup, including K-culture classes for foreign residents and tourists. Lotte Department Store is targeting younger customers by increasing art-class offerings and launching interactive programs, while Hyundai Department Store is introducing workplace-tailored courses. This evolution reflects a strategic shift in offline retail, with department stores redefining themselves as experiential destinations that blend education, culture, and shopping, ultimately supporting loyalty-based strategies and the “lock-in effect.”

IADS Notes: The renewed emphasis on cultural centres in Korean department stores mirrors a global trend, with leading retailers investing in innovative programming to attract younger demographics and foster loyalty. This experiential approach is evident in department stores worldwide, such as Printemps NYC and Selfridges, which are prioritising dwell time and immersive environments. By integrating education, culture, and entertainment, department stores are evolving into vibrant destinations that blend shopping with meaningful engagement, ensuring continued relevance amid changing consumer expectations (April 2025, "Why community might be the missing piece to revive department stores," Forbes; April 2025, "Department stores can be a beacon for retail," The Retail Bulletin; August 2025, "How Seriously Are Department Stores Struggling With Gen Z?" Retail Wire; August 2025, "Lotte department store will significantly expand art courses," Maeil Business Newspaper; August 2025, "In Korea, department stores are a magnet for babies and their moms," Korea Herald).

Korean department stores bet bigger on cultural centres to keep customers longer