What: Lotte Department Store’s foreign sales rose 40% during the October golden holidays, driven by targeted promotions for Chinese tourists and strong demand for K-fashion.

Why it is important:  Lotte’s performance illustrates the resilience of Korean retail in leveraging domestic brands and innovative promotions to offset global volatility in tourist spending.

Lotte Department Store experienced a remarkable 40% increase in foreign sales during the October golden holidays, a result largely attributed to its focused efforts in attracting Chinese tourists and capitalising on the rising appeal of K-fashion. The main branch in Myeong-dong saw sales to Chinese consumers jump 45% year-on-year, with K-fashion specialty halls reporting up to 80% of sales from foreign shoppers. This surge was further supported by luxury category sales, which rose more than 50% among foreign consumers, and by a 90% increase in luxury purchases by Chinese visitors. Lotte’s strategy included tailored promotions, gift certificate events, and plans for exclusive membership programs and lounges for international customers. These initiatives not only boosted sales but also positioned Lotte as a must-visit destination for tourists, particularly as other markets like Japan face steep declines in tourist spending. The department store’s ability to adapt to evolving consumer preferences and currency fluctuations underscores its innovative approach and sets a new standard for experience-driven retail in Korea.

IADS Notes: In October 2025, Lotte’s 40% boost in foreign sales contrasted sharply with the 40% drop in Japanese department store tax-free sales reported in June and September 2025, highlighting the volatility of tourism-driven retail. Korean retailers, including Lotte, have responded with targeted promotions and expanded K-fashion offerings, as seen in September 2025, successfully converting tourist arrivals into sales. Meanwhile, global luxury markets have struggled with declining tourist spending due to currency shifts, but Lotte’s focus on domestic brands and experiential retail has proven effective in sustaining growth and resilience.

Lotte Department Store 40% boost in foreign sales during October golden holidays