What: Lotte Department Store achieved combined sales of 5 trillion won at its Jamsil and Myeong-dong branches for the second year in a row, driven by strong growth and strategic innovation.

Why it is important: This milestone reflects the competitive transformation of Korean department stores, as leading players invest in new concepts and customer experiences to maintain market leadership.

Lotte Department Store’s Jamsil and Myeong-dong branches have reached a combined sales total of 5 trillion won for the second consecutive year, underscoring the company’s robust growth and innovative approach to retail. The Jamsil branch alone surpassed 3 trillion won in cumulative sales, achieving this milestone 21 days earlier than the previous year and setting a new record. This performance is attributed to Lotte’s strategy of maximizing synergies across its platforms, including the department store, Avenuel, and Lotte World Mall, as well as continuous tenant mix innovation and the introduction of popular youth and luxury brands. The expansion of luxury watch and jewelry offerings, along with the opening of specialty halls targeting younger demographics, has further diversified the store’s appeal. Additionally, foreign customer sales have surged, supported by enhanced infrastructure, payment options, and targeted benefits for tourists. These efforts have solidified Lotte’s position as a market leader, demonstrating how integrated retail ecosystems and experiential strategies can drive sustained growth in a competitive landscape. 

IADS Notes: Lotte Department Store’s Jamsil branch surpassing 3 trillion won in annual sales for the second consecutive year, as reported in December 2024 (Maeil Business Newspaper), exemplifies the sector’s transformation through integrated retail ecosystems and entertainment-driven strategies. Lotte’s 44.3% profit growth in August 2025 (Korea JoongAng Daily) further demonstrates the impact of cost-efficiency and innovation, while competitors like Shinsegae and Hyundai invest in renovations to revitalize customer engagement. Despite a general slowdown in department store growth noted in January 2025 (Maeil Business Newspaper), leading players are differentiating themselves by transforming stores into entertainment and cultural destinations. The rivalry between Lotte and Shinsegae in Myeong-dong, highlighted in April 2025 (The Korea Herald), underscores the critical role of luxury expansion and unique offline experiences. By October 2025 (Korea JoongAng Daily), the expansion of cultural centres and academy-style spaces within department stores reflects a strategic shift toward experiential retail and loyalty-building.

Lotte Department Store posts 5 trillion won sales for second straight year in Korea