E-Mart, the country’s largest hypermarket chain, significantly expanded its in-store brand ratio from 30 percent to 70 percent when it reopened a megastore in the western port city of Incheon in March 2023, featuring well-known names such as footwear retailer ABC Mart. Competitor Lotte Mart also revamped its Uiwang branch, south of Seoul, in May 2024 by introducing famous retail partners like Daiso and Donggwang Factory Outlet.
“Through our renovations, we've incorporated numerous family-friendly establishments such as children’s cafes, transforming our spaces to encourage customers to linger longer,” a Lotte Mart official said.
This strategy has extended to high-end department stores as well. Lotte Department Store welcomed Musinsa Standard—the offline brand of the popular online fashion platform Musinsa—to its store in the southern satellite city of Suwon. Meanwhile, Shinsegae Department Store launched a dedicated dessert zone called Sweet Park at its Gangnam flagship mall, featuring renowned global names like Japan’s Gariguette and Belgian chocolatier Pierre Marcolini.
According to industry analysts, the move reflects a broader response to prolonged economic stagnation, which has led to a contraction in the number of hypermarkets operated by South Korea’s top three chains -- from 423 in 2019 to 368 by the end of 2024.
“For brick-and-mortar retailers, bringing in recognizable in-store brands serves a dual function -- generating rental income and elevating the overall appeal of the store,” said Lee Jong-woo, a business professor at Ajou University. “The race to attract brands with strong consumer pull, such as Daiso and Musinsa, is expected to intensify.”
reporter
Kim Dong-young
davekim0807@ajupress.com
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