Shinsegae reveals grand plan for Gangnam store

Shinsegae Department Store aims to make its Gangnam branch in southern Seoul the nation’s top department store by 2015, its CEO Park Geon-hyun said yesterday. He was speaking at a ceremony marking the group’s 82nd anniversary at its main branch in Sogong-dong, central Seoul.

The news comes during a turbulent few months for Shinsegae, which recently took over Central City, a giant shopping complex in the capital where its Gangnam branch is located, and lost possession of its Incheon store to rival Lotte Group.

Lotte Group purchased the state-owned Incheon Terminal Complex, which includes a seven-story building and Shinsegae Department Store’s Incheon branch, last month.

“We formed a special task force last Thursday to help the Gangnam branch emerge as the nation’s top department store,” said Park.

“The Gangnam branch will be enlarged and the overall complex - which includes a hotel, bus terminal and other facilities - further developed. Based on these plans, we will achieve annual sales of 2 trillion won [$1.81 billion] by 2018, three years after this branch becomes the No. 1 department store in the country.”

The CEO also unveiled a long-term goal of growing Shinsegae Department Store’s total sales to 20 trillion won a year by 2020 by increasing the number of new store openings, entering new businesses and enhancing brand value.

It also plans to develop its main stores into leading regional commercial districts, including its main outlet in Sogong-dong, its Centum City branch in Busan, its Yeongdeungpo branch in northern Seoul, and its Gwangju branch.

It will also open large stores after 2015 in core commercial areas such as Yangjae in southern Seoul and Dongdaegu in eastern Daegu. Additionally, it will enhance competitiveness by developing suburban shopping complexes in Hanam, Anseong and Uiwang in Gyeonggi, among other locations.

Shinsegae Mall, its online business sector, will focus on foreign direct sourcing, direct buying and developing customer-oriented goods to gain an edge, the group said. It aims to make this the nation’s leading online mall by targeting mobile shoppers and offering more overseas brands.

The retail giant also vowed to create more jobs to lead shared growth in the industry, while keeping up its corporate social responsibility programs.

“Shinsegae, will be born anew as a company that provides ongoing value and creates a new life style,” said Chung Yong-jin, the group’s vice president.

By Kim Jung-yoon [kjy@joongang.co.kr]