(C) Shinsegae Department Store
SEOUL — Shinsegae Department Store has reached a historic milestone, reporting record-breaking annual sales of 7.4037 trillion KRW for the 2024 fiscal year. This marks the third consecutive year the retail giant has surpassed the 7 trillion KRW threshold, solidifying its dominance in the luxury and lifestyle sectors despite a challenging domestic economic climate.
According to regulatory filings released on February 9, 2026, the department store division's gross sales rose 2.2% year-on-year. Operating profit also saw a steady climb, reaching 4061 billion KRW, a slight increase of 1.6 billion KRW from the previous year. On a consolidated basis—including duty-free and outlet operations—Shinsegae Group’s total revenue surged 4.4% to 12.0077 trillion KRW.
The "Chung Yoo-kyung" Effect: Quality Over Quantity
Industry analysts attribute this robust performance to the "Landmark Strategy" spearheaded by Chung Yoo-kyung, Chairwoman of Shinsegae. Over the past three years, Chung has orchestrated an aggressive investment plan exceeding 4300 billion KRW—roughly equivalent to the division’s entire annual operating profit—specifically targeting the renovation of the flagship Gangnam and Main stores.
"Department stores must be spaces that evoke 'excitement' for customers," Chairwoman Chung has frequently emphasized. "Continuous innovation and transformation are the secrets to maintaining an overwhelming 'super-gap' over competitors."
Gangnam and Main Stores: The Engines of Growth
The results of this capital injection are most visible in the Gangnam branch, which has evolved into a "Global Mega Store." Following the 2024 opening of Sweet Park (a specialized dessert hall) and the upscale dining hub House of Shinsegae, the Gangnam branch has consistently exceeded 3 trillion KRW in annual sales since 2023.
Meanwhile, the Main store in Seoul’s historic center has undergone a luxury rebirth. By rebranding sections as "The Heritage" and "Reserve," and expanding boutiques for Tier-1 luxury brands like Louis Vuitton and Hermès, the store is now approaching the 1.5 trillion KRW annual sales mark. It has successfully transitioned from a traditional retail site into a premier cultural and tourism destination.
A Global Magnet: Diversifying the Customer Base
A key takeaway from last year’s performance is the shifting demographic of high-spending visitors. Shinsegae reported that foreign national sales across its 13 branches hit approximately 650 billion KRW.
Crucially, the customer base has diversified significantly:
East Asia (Taiwan, Singapore, etc.): 25.1%
United States: 19.5%
Global Reach: Visitors now hail from 120 different countries, up from 99 in previous years.
Future Outlook: Beyond Retail
Shinsegae is now looking toward long-term structural competitiveness by expanding into "stay-and-experience" complexes. Major upcoming projects include:
Gwangju: Development of the Gwangju General Bus Terminal site.
Suseo & Songdo: Integrated complex developments combining transit hubs with lifestyle retail.
"The effect of transforming core branches into experience-oriented spaces is now becoming fully manifest," said Kim Hyun-seok, a researcher at Hyundai Motor Securities. "Combined with the continued influx of foreign tourists, we expect this growth trend to persist for the foreseeable future."
As Shinsegae continues to pivot from "selling products" to "curating experiences," the retail industry is watching closely to see if this premium-heavy, landmark-focused strategy can continue to insulate the giant from broader market volatility.
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