What: Korean departments store have resumed their culture centres, paid activities that were launched in the 80s.

Why it is important: This is an astute way to generate an additional revenue (used to refurbish stores) while fostering customer loyalty. El Corte Inglés has a similar approach with their “Ambito Cultural” initive.

After a brief decline due to COVID-19, South Korea's department store culture centers, established in the mid-1980s, are regaining popularity. The major chains – Lotte, Shinsegae, and Hyundai – are not only expanding their culture center classes but are also enhancing them with premium content. This year, class demand has soared by over 40%.

These centers, which initially targeted middle-aged women with traditional classes, now serve as social clubs offering a wide range of courses. They have evolved to include weekend classes for young families and evening classes for professionals, adapting to changing lifestyles and work patterns.

The culture centers play a crucial role in attracting customers to the stores and are seen as key marketing tools, with significant investments made in them. They offer a variety of classes including humanities, arts, fitness, and high-end sports, at prices lower than market rates. Recent additions include premium content like golf and cooking classes using farm-fresh ingredients.

Overall, these centers are a strategic blend of education, social interaction, and marketing, contributing significantly to the department stores' customer experience.

South Korea’s department store centres cultural experiences