“As the economic situation continues to worsen, consumers visiting stores have felt a decrease of about 80–90%. While sales keep declining, it has become difficult to manage store rents, leading the owner to decide to operate only until the end of next month before closing.”

On the 25th at 1 p.m. in Nonhyeon-dong, Gangnam, the ‘furniture street’, a staff member at ACE BED’s Nonhyeon branch said, “I heard that a smaller place with lower rent than the current store has come on the market, but it’s still unclear if we will transfer to a different location and reopen the store.”

On the 25th, a 'store closing sale' banner is hanging at ACE BED located on the furniture street in Nonhyeon-dong, Gangnam-gu, Seoul. The store plans to clear its store by the end of May and then close. /Courtesy of Min Yeong-bin

In front of the ACE BED Nonhyeon branch, a banner read, ‘Selling items below cost before the store closes.’ Another employee stated, “We have been in business for about 30 years. We managed to hold on during the difficulties of the COVID-19 pandemic,” but added, “As the years go by, the economy worsens and fewer consumers come to buy beds and furniture, leading to the closure.”

The store was already in the process of clearing out stock, from display beds and sofas to accessories that made up the store (bookshelves, clocks, desks, decorative shelves, etc.). A bed worth 8 million won was on sale with a 25-40% discount, while a decorative shelf priced at 5 million won was sold for 3 million won in cash. A notice read ‘Sold items, please do not lie down’ was placed on a sold display bed.

A 10-year long regular customer, Choi Soo-mi, 63, said, “When I think of leading bed brands, ACE BED comes to mind,” and added, “It’s shocking to hear that even the leading brand is closing.” She purchased a bookshelf and a clock, with only one of each remaining in stock, from the store that day.

This situation is not just limited to the ACE BED store. Some businesses selling Italian and British imported beds and sofas have already closed, leaving their stores empty. Although a poster announcing spring sales was put in front of operating store, the inside was only filled with furniture, and there were no customers browsing.

An employee at LIVART Total Gangnam noted, “Due to the economic downturn, there are fewer people coming to look at beds and furniture,” and added, “During weekdays, two employees can manage the entire store from the basement level 1 to ground level 3.” An employee from Simmons’ Nonhyeon branch stated, “Although there is an April promotion going on, foot traffic to the furniture street is scarce.”

On the 25th, some import furniture stores on the furniture street in Nonhyeon-dong, Gangnam-gu, Seoul, have closed. The stores are currently vacant. There are no customers in the representative brand stores like Simmons and Hyundai LIVART located on the furniture street, and the street itself is hardly populated. /Courtesy of Min Yeong-bin

In Nonhyeon-dong, the furniture street hosts over 100 brands operating stores directly or through agencies. This area, designated as a specialized furniture culture street by the Gangnam District Office in 1996 to activate the commercial district, is considered a battleground for leading bed and furniture brands.

Industry insiders view the closure of the ACE BED Nonhyeon branch as a serious matter. An industry official stated, “For a specific brand to close or withdraw from Nonhyeon-dong, a business area where top brands in the country gather, shows that the brand has lost strength,” and added, “If a leading player in the industry cannot survive, it indicates how tough the economic situation is.”

According to the National Statistical Office, as of March this year, the Economic Sentiment Index (ESI) was 87.2, down 3 points from the previous month. An ESI above 100 indicates an optimistic view of the economic situation, while a reading below 100 indicates a pessimistic perspective. The consumer price index in March rose by 2.9% compared to the same month last year, signifying deteriorated sentiment about the economic situation and increased living expenses due to high prices.

Professor Seo Yong-gu from Sookmyung Women’s University noted, “This signals the beginning of the end for offline retail markets,” stating that, “Due to the recession, there are virtually no purchases of high-priced beds and furniture, and with alternatives like mid-to-low priced private brand products available through online shopping, there is no longer a reason to visit the furniture street.”

In the furniture and bedding industry, businesses are focusing on promotions such as offering discounts to overcome poor performance during the recession. Simmons is conducting a program called ‘Simmons Pay’ that allows customers to purchase products in interest-free installments for up to 24 months. ACE BED is running promotions offering discounts and free gifts in both online and offline stores. HANSSEM and Hyundai LIVART are focusing on strengthening their business-to-consumer (B2C) capabilities instead of business-to-business (B2B) transactions as the construction and real estate market downturn continues.