Shinsegae Department Store has announced a monumental surge in foreign customer sales, reporting a record 580 billion won ($385 million) in the first half of the year, a remarkable 120 percent increase year-on-year. This strong performance positions the premier Korean retailer to exceed 1 trillion won in annual foreign sales for the first time in its history.
The first-half achievement already accounts for nearly 90 percent of the total foreign sales recorded for the entirety of last year, underscoring the rapid growth in international shopper engagement.
Shinsegae attributes this impressive growth to several strategic initiatives. Key drivers include its exceptional luxury brand portfolio, engaging K-culture content developed in collaboration with popular K-pop artists and the Korea Tourism Organization, and robust partnerships with leading global payment providers such as UnionPay, enhancing convenience for international visitors.
The retailer has also successfully diversified its foreign customer base. While Chinese shoppers historically dominated, their proportion of foreign sales in the first half reduced to 48.5 percent from 77.5 percent in 2019. Concurrently, the presence of US and Southeast Asian shoppers significantly increased, accounting for 19.1 percent and 14.9 percent of foreign sales, respectively, highlighting a broader global appeal.
Spending patterns among international visitors have also expanded beyond traditional luxury purchases. Although luxury sales experienced a substantial 129.3 percent jump, Shinsegae also observed robust growth across various other categories, including fashion, cosmetics, and food and beverage sales, indicating a more holistic shopping experience.
Shinsegae’s dedicated foreign membership program has garnered significant traction, attracting over 300,000 members from more than 120 countries. The department store actively leverages data-driven marketing, exclusive shopping benefits, and personalized concierge services to foster customer loyalty and encourage repeat visits from its valuable international clientele.
Both of Shinsegae’s flagship stores have played a crucial role, benefiting from targeted tourism strategies. The iconic Myeong-dong flagship has become a magnet for overseas visitors, captivating them with dynamic K-pop content showcased at Shinsegae Square. Meanwhile, the Gangnam branch has cemented its status as a global shopping destination by seamlessly integrating luxury retail, diverse dining options, and its prime location within Seoul’s first riverside tourism district, offering a unique urban shopping experience.
Park Joo-hyung, CEO of Shinsegae Department Store, emphasized their market position: “Shinsegae Department Store has firmly established itself as a premier destination for international visitors keen on experiencing K-shopping, K-food, and K-content.”
He further added, “We are committed to strengthening our leadership as Korea’s foremost shopping landmark by continuously building upon the distinct strengths of our flagship stores and our unparalleled premium brand portfolio.”
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