Global fashion group Inditex operates the fast fashion brand Zara, which will introduce "Zacaffé" in Myeongdong, Seoul. This will be its third food and beverage (F&B) outlet following Madrid, Spain, and Nanjing, China. The new café was established while expanding and remodeling the existing Zara store in Myeongdong, which has been operating since 2009.
On the day before the official opening on the 8th, the interior of Zacaffé, which recreated a gray stone wall path found at Deoksugung Palace, caught attention. Zacaffé modernly interprets the traditions and culture of each city; the Korean store's interior is inspired by the stone wall paths of the palace. It offers a menu and goods (souvenirs) tailored to the Korean market, including crystal drinks, lattes, and monaka.
The Zara store at the Nunsquare has been designed as a flagship store that expands the previous two floors into three. Covering a total area of 2,223 square meters (672 pyeong), the first and second floors are dedicated to women's clothing, while the third floor features men's clothing and Zacaffé.
A boutique-style space has been arranged separately for bags, shoes, and leather goods, and the fitting area has been expanded. Customers can check the availability of fitting rooms through a screen. Additionally, they can use the Zara mobile application (app) to track product locations and stock in real-time, as well as pick up online orders in-store within two hours.
The opening day of the Nunsquare store on the 9th also marks the 50th anniversary of the Zara brand. A representative from Zara Korea noted, "We designed the store and café not just for shopping but to allow customers to experience a space embodying Zara's identity," adding that this store format will be introduced for the first time in the country, with plans to present Zacaffé in other locations in the future.
Previously, global fashion brands like Dior, Gucci, Hermes, IWC, Ralph Lauren, and Maison Kitsuné have introduced stores combining cafés, citing "customer experience" as the reason. While the focus has been on high-end brands like luxury goods, there is a growing trend for popular brands to enter the F&B business. The Japanese SPA brand Uniqlo also operates cafés in Japan, Hong Kong, the Philippines, and the United States.
Industry experts identify the advantages of fashion cafés as a way to expand their ecosystem into lifestyle brands using coffee. Another benefit is the favorable exposure on social media (SNS). Customers sharing their experiences in cafés on Instagram and TikTok enhances brand recognition and value while facilitating communication with more customers.
Zara announced last November when it first introduced Zacaffé in Madrid that it would enter some flagship stores worldwide, including in Tokyo and Seoul. The decision to choose Myeongdong as the third café globally appears to be effective due to the rapid recovery of the commercial area following an increase in tourists after the COVID-19 pandemic.
According to Cushman & Wakefield, the vacancy rate in Myeongdong's commercial area, which soared to 52.5% in 2022, decreased to 6.8% last year. The vacancy rate in the fourth quarter of last year was 4.4%, significantly lower than the average vacancy rate of major commercial areas like Gangnam, Hongdae, Garosu-gil, Hannam and Itaewon, and Cheongdam (16.6%).
In just last year alone, CJ Olive Young, Matin Kim, Musinsa Standard, Lululemon, and Kodak Apparel opened flagship stores in Myeongdong. Monthly sales at major stores hover around 1 billion won, with over 90% of the sales reportedly attributed to foreign tourists. As a result, Lotte Department Store and Shinsegae Department Store, which have their main branches nearby, are also focusing on customer acquisition through store renovations.