Lotte Department Store Ushers in '1 Trillion Won Era' for Sales to Foreign Customers... Myeong-dong and Jamsil Led the Way

[Financial News] Lotte Department Store has become the first in the industry to usher in an era of 1 trillion won in sales to foreign customers. The company plans to further strengthen its content and services for foreign customers and solidify its position as a global shopping destination.
According to industry sources on the 6th, Lotte Department Store's cumulative sales to foreign customers surpassed 1 trillion won as of that morning. This marks the first time that sales to foreign customers have exceeded 1 trillion won in Korea's department store industry. Lotte Department Store surpassed the industry's previous annual record of 734.8 billion won, set last year, in July and reached the 1 trillion won milestone just three months later. This is seen as evidence that Korean department stores have established themselves as major shopping destinations for foreign tourists. As more foreign customers seek uniquely Korean content such as K-fashion and K-food, department stores are expanding their role beyond shopping to become places where visitors can experience Korean culture.
A Lotte Department Store official said, "The rise of foreign customers as a major customer group in the retail industry shows that the increase in tourists is leading to an expansion of the market. Like major department stores overseas, Korean department stores are becoming global shopping destinations as sales to foreign customers account for an increasing share of their business."
Lotte Department Store's efforts to enhance its content and services to meet the preferences of foreign customers also contributed to the results. The main driver of sales to foreign customers was Lotte Town Myeongdong, where sales to foreign customers reached approximately 520 billion won this year alone. The main branch offers content that allows visitors to experience Korean fashion and culture through themed events such as K Shopping Week and the Lotte Town Myeongdong Festival, as well as the K-fashion specialty section KINETIC GROUND.
Lotte Town Jamsil is attracting foreign customers by combining shopping, tourism and entertainment. In particular, the number of tourists from the Americas and Europe visiting the Jamsil branch has risen rapidly this year. Sales to foreign customers at Lotte Town Jamsil increased 100% from the same period a year earlier. Customers from the Americas and Europe accounted for 35% of sales to foreign customers, up 15 percentage points from 2019.
As foreign tourists are also traveling beyond Seoul to other regions, sales at stores outside the Seoul metropolitan area are increasing. This year, sales to foreign customers at Lotte Department Store locations outside the capital region rose to roughly 2.5 times or more the previous year's level. Sales to foreign customers at stores in the Busan area increased 150% from the previous year, while stores in the Honam region, including the Jeonju and Gwangju branches, recorded 100% sales growth.
By product category, sales to foreign customers rose sharply in luxury goods, K-fashion and food. Lotte Department Store's luxury goods sales to foreign customers more than doubled from the previous year, while K-fashion sales roughly doubled. As interest in K-fashion grew, the number of emerging K-fashion brands featured by Lotte Department Store this year reached around 100, the highest ever. Sales to foreign customers in food halls and restaurant areas increased 50% from the previous year as more foreign customers sought to enjoy K-food.
Lotte Department Store plans to expand its global customer base and strengthen its position as a major shopping destination for tourists visiting Korea. To that end, it will introduce online advance registration for its foreigner-only Lotte Tourist Membership, which has recorded 250,000 cumulative members. Thanks to these enhanced content and services, along with the increase in foreign customers at regional stores, Lotte Department Store expects its annual sales to foreign customers to exceed 1.3 trillion won this year.
Jung Hyun-seok, CEO of Lotte Department Store, said, "It is meaningful to have set a new milestone by ushering in the department store industry's first era of 1 trillion won in sales to foreign customers. As foreign customers have established themselves as a core customer group for department stores, we will continue to anticipate the needs of global customers, strengthen differentiated shopping experiences and content, and grow into Korea's leading global department store."

[email protected] Jang Yu-ha Reporter