Jeong Jun-ho, the representative of Lotte Department Store, announced a goal to develop the Jamsil branch, which surpassed 3 trillion won in annual transactions last year, into a store with sales in the 4 trillion won range by 2028.
On the 12th, at the Lotte Hotel Seoul in Jung-gu, Jeong noted during the 16th Intercontinental Department Store Association (IGDS) World Department Store Summit (WDSS 2025) that "the Jamsil branch achieved sales of 3 trillion won last year."
Thanks to pop-up stores like Pokemon Town, which opened 340 in just one year, the number of visitors to the Lotte Department Store Jamsil branch increased by 28% compared to five years ago. The proportion of customers in their 20s and 30s accounted for 42% of the total. The Jamsil branch also received the second place award for 'World's Best Innovative Department Store' at the WDSS 2025 ceremony held the previous evening, following Thailand's Central Department Store Chit Lom.
On that day, Jeong discussed the evolution of the domestic department store industry under the theme of 'K-Retail and K-Management.' He pointed out that the factors allowing Lotte Department Store to be successful in the Korean market included enhancing VIP services, experiential content such as pop-up stores, and securing foreign tourists.
Jeong stated, "While the overall population has stagnated over the past five years, the affluent class has increased by 30%," adding that "VIP expenditure accounts for 62% of the total." According to Lotte Department Store, last year the annual expenditure of the top 1% of customers was $35,000 (approximately 48 million won), growing by 2.5% compared to the previous year. In contrast, the top 1-5% of customers had an expenditure of $6,500 (approximately 8.83 million won), and the bottom 95% spent $379 (approximately 510,000 won), decreasing by 1.5% and 6.7%, respectively.
Jeong highlighted that Lotte Department Store is focusing on brand collaborations and providing cultural experiences targeting VIPs. A representative example is the 'High Jewelry Fair,' featuring 14 renowned international brands including Cartier, Bulgari, and Van Cleef & Arpels. He emphasized that this standalone event alone achieved $19 million (approximately 25.8 billion won) in revenue, realizing 'High cost, strong return.'
Jeong stressed that a key strategy for domestic department stores should be to invest in major large cities. He noted the importance of diversifying categories, including luxury, beauty, children, sports, and electronics. He stated, "We need to enhance customer loyalty and attract younger customers through various experiences," and added that "applying high-level digital transformation across all areas is also part of the strategy."
He drew attention by referring to Hyundai Department Store's 'The Hyundai Seoul' as 'a revolution in retail.' In a Q&A session following the presentation, Jeong remarked, "I believe that 'The Hyundai Seoul' is revolutionary because it seeks spatial innovation, different from traditional department stores," and added, "We must learn from it." He further elaborated that "the renewal of the Jamsil branch will become a model that elevates the evolution created by The Hyundai Seoul to a new level."
He also mentioned the response strategy of Lotte Department Store. Jeong noted, "Most Korean corporations have a top-down reporting style, making it difficult for younger employees to propose creative ideas," and said, "Since I became the representative of Lotte Department Store in 2021, the decision-making structure has changed significantly. Now, the project leaders are at the core of decisions. There are team members around who provide different opinions and become new motivation factors."
Meanwhile, the 'WDSS 2025,' co-hosted by Lotte Department Store and IGDS, was held over two days on the 11th and 12th of this month. This year's summit, themed 'The best ways to captivate customers,' featured over 20 domestic and international retail experts leading global trends, including the UK’s Liberty Department Store, the US’s Nordstrom, Japan’s Shibuya Parco, Moncler, and Amorepacific Corporation. Over 300 retail stakeholders attended.