Shinsegae Department Store in Daejeon confirmed on the 7th that Louis Vuitton will open a store in October. This is the first case of Shinsegae Daejeon attracting high-end luxury goods represented by 'Eru-sha' (Hermès, Louis Vuitton, Chanel).
According to the retail industry, Shinsegae Daejeon (Daejeon Shinsegae Art and Science) has begun renovations on the 1st and 2nd floors to prepare for a Louis Vuitton two-story store. The store is set to open in October.
Since opening in 2021, Shinsegae Daejeon has brought in brands such as Vacheron Constantin, Dior, and Bulgari. This is the first time Eru-sha brands will be present in the store. Attracting Eru-sha level luxury goods is considered a major task directly linked to sales in the department store industry.
Currently, the local competitor Hanwha Galleria Timeworld has both Louis Vuitton and Louis Vuitton Men's stores side by side. Eru-sha strictly applies a total floor area cap for stores, but allows for multiple stores in some regions. The contract between Louis Vuitton and Galleria Timeworld is reportedly valid until 2026.
Industry insiders predict that attracting Louis Vuitton will solidify Shinsegae's image as the 'number one in the region,' while also helping to increase transaction volume. Despite being open for only four years, Shinsegae Daejeon has surpassed Galleria Timeworld to become the largest store in the Chungcheong region.
Shinsegae Daejeon has been criticized for not having Eru-sha brands, but attention is focused on whether the recent entry of Louis Vuitton will allow it to overcome this deficit. Shinsegae Daejeon has also attracted Dior, which is considered one of the four major luxury brands.
Shinsegae Daejeon recorded sales of 970 billion won last year, ranking first in the Chungcheong region and 13th among 68 major department stores nationwide. There is also attention on whether this amount can surpass 1 trillion won this year with the entry of Louis Vuitton. If Shinsegae Daejeon exceeds 1 trillion won in sales, Shinsegae Department Store will become the only department store in the country to have five stores classified as 'over 1 trillion' (Gangnam, Centum City, Daegu, Main, Daejeon).
Galleria Timeworld recorded sales of 626.5 billion won last year, a 7.5% decrease from the previous year, ranking second in the Chungcheong region and 17th nationally. Recent sales have decreased to 740.7 billion won in 2021, 736.2 billion won in 2022, and 676.6 billion won in 2023. A Shinsegae official noted, 'We will strive to create a better regional shopping environment.'