Lotte holds global retail summit addressing future of department stores

Home > Business > Industry

Lotte holds global retail summit addressing future of department stores

Published: 12 Jun. 2025, 18:23 Updated: 12 Jun. 2025, 20:17

CHO YONG-JUN
[email protected]

Audio report: written by reporters, read by AI

Lotte Department CEO Chung Joon-ho gives a speech at the World Department Store Summit on June 11 in Lotte Hotel Seoul in Jung District, central Seoul [LOTTE DEPARTMENT STORE]

Lotte Department Store held a global retail summit on Wednesday and Thursday, bringing 20 different executives of the department store and retail industries together to discuss the future of department stores.

“Lotte Department Store has been pursuing new strategies following the Covid pandemic to meet the requirements of the new generation and the generational changes,” Lotte Department Store CEO Chung Joon-ho said during his keynote speech on Wednesday at the World Department Store Summit (WDSS).

Lotte Department Store hosts WDSS summit to bolster physical malls

The WDSS, organized by the Intercontinental Group of Department Stores (IGDS), took place in Korea for the first time on Wednesday and Thursday, and was hosted by Lotte Department Store at the Lotte Hotel Seoul in Jung District, central Seoul.

The Lotte Department Store CEO said the company focused on engaging on collaborations for pop-up events that attracted customers to its department stores. The department store held pop-up events with 31 luxury brands and 46 fashion brands. Notably, the Pokémon Town 2025 held in May brought 1.2 million people in the first five days of the event.

“Providing new and dynamic customer experience, that’s what matters,” the CEO said. “Pop-up store strategy made customers visit the stores more frequently and word-of-mouth had helped increase the revenue, too.”

The CEO also said Lotte Department Store valued its top customers who drive the business.

“The top five percent of Lotte Department Store’s customers make up more than half of the revenue,” he said, adding that exclusive products and promotions tailored to the “VIP” status of the store are crucial in retaining their interest.

“Lotte Department Store has five sommeliers and we host special events for our valued customers; it costs us a lot, but it also returns a high profit.”

Being held in Korea for the first time, the summit also focused on the Korean retail industry and its success. Lotte Department Store, as the only Korean member at the IGDS that organizes the WDSS, alongside executives of Amorepacific, beauty retailer Olive Young, fashion brand Hago Haus and restaurant operator GFFG, had talks focusing on their efforts in going global.

Chung emphasized the importance of making department stores a key destination for foreigners.

“The trend of foreigners visiting Korea changed in recent years, from group travelling to individual travelers and from duty-free shopping to experiencing K-content during their visit to Korea,” Chung said, adding that visiting Tamburins and Gentle Monster stores are also examples of foreigners looking for K-content.

GFFG CEO Lee Joon-beun talked about the rise of Korean cuisine, known as K-food, and said that K-food is growing to be an instrument that “surpasses cultures and borders.” Lee said the company’s doughnut brand, Knotted and fusion Korean cuisine Hojokban, best describe such cases, with the latter opening stores in New York.

The conference also had Liberty CEO Adil Mehboob Khan, Nordstrom CEO Fanya Chandler and Shibuya Parco’s general manager Yugo Hiramatsu providing insights.

Following the two-day summit, participating executives were given the opportunity to tour the Lotte Department Store in Jung District, central Seoul, located near the Myeong-dong shopping district.

“Lotte Department Store will expand its position as an innovative retailer that collaborates with worldwide department stores and partners to help K-brands’ growth,” the CEO said in a press release.

BY CHO YONG-JUN [[email protected]]