Shinsegae takes over Lotte's Centum City branch, plans 'Shinsegae Town' in Busan

[Financial News] Shinsegae Department Store is acquiring Lotte Department Store Centum City Branch and will turn the Centum City area of Busan into a large-scale mixed-use shopping district. The plan is to create 'Shinsegae Town' by linking the existing Shinsegae Centum City store with the acquired store, bringing shopping, culture, tourism and leisure together in one place.
According to industry sources on the 29th, Shinsegae Department Store submitted a business combination notification to the Korea Fair Trade Commission that day to acquire Lotte Department Store Centum City Branch. The acquisition is seen as a strategic decision for Shinsegae to expand its business presence in Busan and for Lotte Group to focus investment on its key stores.
Shinsegae plans to operate its existing Centum City store and the adjacent Lotte Centum City store as one, creating synergies between the locations. It expects that securing an additional store will allow it to expand its business scale while improving operational efficiency.
Shinsegae Centum City, which opened in 2009, is the world's largest department store. From its opening, it set itself apart from traditional department stores by offering a range of experiential and cultural facilities, including Spa Land and an ice rink. It went on to become one of Busan's leading shopping and tourist attractions, and in 2016 became the first department store outside the Seoul metropolitan area to surpass 1 trillion won in annual sales. It also recorded annual sales of at least 2 trillion won for three consecutive years, from 2023 through last year.
Shinsegae has steadily expanded its business in the Centum City area. After opening Centum City Mall in 2016, it moved to expand its mixed-use commercial facilities by pursuing development of the nearby C site. With the acquisition of Lotte's Centum City store securing additional operating space, development projects in the area are expected to gain further momentum.
The acquired Lotte Centum City store is first set to undergo renovations and be transformed into a new mixed-use shopping space. The plan is to attract more customers by introducing cultural and leisure facilities, along with shopping offerings that set it apart from existing department stores.
Development of the C site in Centum City is also set to move forward in earnest. Shinsegae plans to build a large-scale mixed-use complex on the site, with a luxury hotel, office facilities and premium residences. The aim is to create a mixed-use commercial district by linking the existing department store with the new facilities, making it possible to shop, stay overnight, work and enjoy cultural activities in one area.
The sale will give Lotte Department Store greater capacity to invest in its key stores. It plans to boost the competitiveness of major locations, including its Jamsil, Main and Busan Main stores, while focusing its resources on future growth areas such as developing new shopping malls.
Shinsegae President and CEO Park Joo-hyung said, ‘This transfer deal is highly significant because it has created a business environment in which both companies can move beyond competition and each develop further. With this acquisition, we will develop Shinsegae Centum City into Shinsegae Town, where shopping, culture, tourism and urban spaces are organically integrated, and make it a key global landmark representing Korea.’
[email protected] Jang Yu-ha Reporter