Department stores renovate their way to the future

A tennis court will open on the third floor of Lotte World Mall in southern Seoul on Saturday. [LOTTE DEPARTMENT STORE]

Major department stores are spending over 1 trillion won ($755 million) this year for renovations as growing numbers of people view department stores as not merely shopping spaces, but as places to gain fresh experiences.

Three department stores — Lotte, Shinsegae and Hyundai — are spending a total of 1.24 trillion won to renovate their facilities to create spaces for visitors to play sports or try trendy foods in a bid to attract young consumers in their 20s and 30s.

The figure is up 32.8 percent on year.

Lotte Department Store will invest 388.9 billion won this year and 432 billion won next year for renovations. The Suwon branch in Gyeonggi, which opened its doors in 2014, will go through a large-scale renewal this August, to be completed by next February. The renovation’s aim is to acquire more foreign brands and expand fashion stores targeting younger consumers in nearby universities.

The Gangnam branch, situated in southern Seoul, is seeking approval to begin renovations this year.

The Lotte Young Plaza in central Seoul will close down for the first time in 20 years as it transitions into a premium F&B space, filled with food brands gaining traction on social media.

Lotte has been targeting relatively new but trendy food brands that are popular with younger consumers. Popular donut brand Knotted opened a two-story shop in the Lotte World Mall in southern Seoul in March, while the trendy bagel store, London Bagel Museum, will open a branch in the mall next month.

Shinsegae Department Store will inject 586.8 billion won this year to establish new branches and renovate existing branches. Shinsegae is turning the single-story Hermes store on the first floor of its main branch in central Seoul into a two-story shop, and the sporting goods section of its Gangnam branch in southern Seoul is undergoing renovations.

Hyundai Department Store CEO Kim Hyung-jong said at a general shareholder's meeting in March that he “plans to completely transform” its Apgujeong branch in southern Seoul and Pangyo branch in Gyeonggi.

The Apgujeong branch’s underground food court will be under construction until October to convert the space into a premium dining hall. It’s the first time in 19 years that the entire floor of 6,750 square meters (72,656 square feet) is undergoing renovation.

The Pangyo branch, which recently opened a fashion section for foreign brands in March, is on the hunt for new brands of jewelry and watches.

“We are also preparing to open the doors for The Hyundai Gwangju, which will set new expectations for futuristic retail platforms,” Kim said in March.

The Hyundai Gwangju is a planned mega mall in the city of Gwangju in southwest Korea.

However, it is still unknown if the Gwangju city government will approve the construction of the massive center.

In total, the department store will spend 260 billion won to upgrade or open new branches.

Hanwha Solution’s Galleria Department Store bought a building 200 meters away from its Luxury Hall branch in southern Seoul for 89.5 billion won last month.

“We are considering establishing a trendy and experimental space for consumers of the MZ Generation,” a spokesperson from Hanwha Solution said.

BY YOO JI-YOEN, LEE JAE-LIM [lee.jaelim@joongang.co.kr]