SOUTH KOREA. Travel retailer Shinsegae Duty Free today unveiled its new store in Central City in the Seoch-gu area of Gangnam, Seoul. As reported last year, the company has invested heavily in the 13,350sq m location, with KRW75 billion (US$69 million) injected here (on top of heavy investment at the company’s new Incheon Airport Terminal 2 concession).
Shinsegae’s downtown location in Gangnam – the origin of the Korean-wave – covers three main floors with a comprehensive list of luxury brands. Korean cosmetics brands have been placed on every level including the basement level (see floor plans below), underlining their importance in the mix.
The company said: “Experience just how trendy life in Seoul can be, including ‘Gangnam-style’ shopping, dining, Korea’s first 3D media façade, and the social media playground, Studio S.”
By floor from the top, 3F covers watches and jewellery, luxury fashion, fashion accessories, Korean Cosmetics, and sunglasses with over 120 brands present. On 2F shoppers can find cosmetics and perfumes, liquor and tobacco, gourmet and other foods, and ‘character goods’. Over 100 brands are available here.
Level 1F houses more than 50 brands such as larger luxury marques in their own boutiques, plus fashion and accessories, more beauty, sunglasses, and the main customer service desk. The -3F basement level inlcudes Korean cosmetics, a Korea local promotions zone, and the Shinsegae gift shop.
Good timing as Chinese traffic rebounds
Expectations will be high for the new store now that Chinese numbers to South Korea are almost back to normal after plunging in the wake of last year’s THAAD crisis. In the five months to May, Chinese traffic reached 1.8 million, down -10.4%. This is a vast improvement on the 12 months to December 2017 when the decline was -48.3%.
Shinsegae Duty Free generated sales of around US$1.2 billion at its Myeong-dong store last year, with another US$240 million at the company’s Busan downtown shop.
In October 2017, Shinsegae Group underlined its duty free ambitions by establishing a new entity called Shinsegae Duty Free Global, after splitting its duty free businesses in Busan and Incheon International Airport from parent company Shinsegae Chosun Hotel.
