What: Korea’s top three local luxury department stores are expecting continued “revenge spending” after enjoying notable sales growth over the past three months.

Why it is important: Local department stores in Korea have seen strong growth post-pandemic guiding plans to build up the luxury and furniture offer expected to grow to 20 trillion won.

Lotte, Shinsegae and Hyundai Department Store achieved all-time high business performances in the second half of this year, thanks to increased sales in various sectors, including sports, domestic fashion and kids. Growth in sales of luxury goods and furniture has also contributed significantly to the major department stores’ all-time-high figures.

The three department stores have been focusing on building their furniture offer through their own furniture brands. The goal is to prepare for the growth of the local market expected to reach the size of 20 trillion won by 2024.

Last year, Lott took over the local interior and furniture brand Hassem, while Shinsegae has Casamia and Hyundai Department Store acquired e-commerce mattress company Zinus in March.

Korean department stores see positive growth in Q2